The files seem to have installed correctly after using the absolute path names like you suggested. Unfortunately Cydia still crashes.

(Reading database ... 2908 files and directories currently installed.)
Preparing to replace essential 0-1 (using .../essential_0-1_iphoneos-arm.deb) ...
Unpacking replacement essential ...
Preparing to replace cydia 1.0.2953-59 (using .../cydia_1.0.2953-59_iphoneos-arm.deb) ...
Unpacking replacement cydia ...
Setting up essential (0-1) ...
Setting up cydia (1.0.2953-59) ...
2010-02-18 10:17:12.596 respring[293:903] 3.1.2

Looks like my problem runs deeper than just the Cydia app. I'll give redsn0w a try before I restore with my CustomISPW. Hopefully a re-run of the jailbreak will resolve the issue. I'm getting weary of restoring the entire phone as this will be the 4th time it's happened. Not sure why my phone is so unstable with the jailbreak. Maby I got a lemon...

Thanks SO much for your suggestions and timely response, I appreciate it.

Hello Vaelek,
Thank you for providing support for resurrecting Cydia. I've read through the blog comments trying to resolve this myself but my device is not responding as expected. It's likely that I'm blowing it somewhere along the way and any help would be greatly appreciated.

Here is my scenario:

• Installed SBSettings Vibrate Toggle through Cydia with no problems or errors.
• Tried the Toggle and realized that it's completely useless.
* Opened Cydia in an attempt to uninstall the Toggle.
* Cydia crashed identically to the way many others here have described:
Begins to load, shows default screen for half a second,
fails to load and snaps quickly back to the spring board

Here is what I've done to resolve the problem:

• Downloaded and unzipped the 2 deb files from your site.
essential_0-1_iphoneos-arm.deb
cydia_1.0.2953-59_iphoneos-arm.deb
• Uploaded both of them to /var/mobile via SSH (Cyberduck - A Mac SFTP Client)
• Opened the /var/mobile folder containing the newly uploaded files in an SSH session
• Copied the code string directly from your instructions
dpkg -i essential_0-1_iphoneos-arm.deb cydia_1.0.2953-59_iphoneos-arm.deb; respring
• Chose GO > SEND COMMAND from Cyberducks menu bar
• A window opened displaying a TERMINAL icon, input field and results pane.
• I pasted the code string into the command line input field and clicked SEND
• The sent command returned these errors in the results pane

dpkg: error processing essential_0-1_iphoneos-arm.deb (--install):
cannot access archive: No such file or directory
dpkg: error processing cydia_1.0.2953-59_iphoneos-arm.deb (--install):
cannot access archive: No such file or directory
Errors were encountered while processing:
essential_0-1_iphoneos-arm.deb
cydia_1.0.2953-59_iphoneos-arm.deb
2010-02-17 00:59:55.642 respring[527:903] 3.1.2

• The phone did a respring but Cydia still crashes

I'm doubtful this solution is going to work for me after reading how simple and effective it has been for others but like I said before, maby I'm missing something. Any obvious mistakes in my process that you can recognize?

SIDE NOTE:
You mentioned in one reply that the jailbreak can be, "re-run" using redsn0w. Will doing a re-run that way allow me to keep all of my jailbreak apps, tweaks and themes in tact? I've only used Pwnage Tool which requires a complete wipe and restore of the entire phone.
Thanks