Well, I don't understand the details, but the least complex setup is going to be something like this:
/dev/sdb, SD card device
/mnt/sdb1, with EXT3 (for the journalling!)
---> PND file loopback mounted on /dev/loopx
/dev/loopx, losetup device PND
/mnt/pndx, where the prior loop is mounted
--->...