Thank you for your answer.
I understand your claim on CFE not being corrupted... Here is a better description of what I did from the beginning. At first, I couldn't access my router via web browser, so I started to look for solutions to get it back on. I've read a lot! I started by trying a TFTP firmware upload but no luck since router was always going back into TTL=100 which is a request for a firmware. I then created a serial connection, I stopped router while booting with CTRL+C, erased nvram and kernel, uploaded firmware via TFTP, but not luck again, router was always asking for a firmware. Then this is why I started to think it was a corrupted CFE.
I order a JTAG and received it last week, soldered pins to board, and hooked all wires following DIYGADGET procedure described here:
http://www.tiaowiki.com/w/Debrick_Routers_Using_zJTAG_and_DIYGADGET.COM's_FTA_JTAG_Cable
I erased Nvram and kernel, and I could also erase CFE. I then installed an exact copy of the original CFE for my Linksys WRT150N v1.1 which I applied my own MAC address prior to installing it. After the CFE had been installed, I rebooted and opened a serial console (Putty), stopped the booting process and uploaded the firmware via TFTP. I then reboot but... The problem remains! Even with a fresh CFE and Firmware, it keeps requesting for a firmware...
With help from some people, we also supposed the PSU was faulty, but it shows a steady 12.24V. It looks OK. So I looked into the serial console script, and it mentioned the following right after the upload:
ERROR. Flash device write error at address 1c06b6d2
Failed.: I/O error
*** command status = -4
Then on reboot, it says:
Invalid boot block on disk
Then the conclusion we made was a bad flash chip...
I see what you suggest here, that I upload a DD-WRT firmware. I didn't try this yet, because I was trying to upload OEM firmware. This router has never been installed with another firmware than OEM. Maybe I should try this, but so far, it looks like a hardware failure for unknown reason. I'll try uploading a minimal size firmware (DD-WRT) and update you about this.
Thank you for your help mstombs,
Vincent