Boot looping / Corrupted data partition, CWM crashes when restoring to factory defaults
Try doing a data wipe and wipe the cache as well. I would then reinstall the CM7 package on the device. 

If the issue is specifically with CWM crashing, it could be because the partitions are sizes that CWM doesn't support. I had an issue like that with my Nook Color. I have a nerwer model and the data partitions were 5GB and the media partition was 2GB, the older versions had it reversed. I found a script that someone already created to put the partitions back to the old format and CWM worked fine after that. 

Now, I am taking a shot in the dark here on this, as I do not have that device, nor have I really read anything about it or the issue you are describing.