>         SqueakVM-2.0-i586-linux-2.1.24 -m40m Squeak2.1.image

Replace the -m40m with -memory 40m and it will work.

Don't forget that you can also set environment variables if you want to
change the defaults (these can still be overridden with command-line
options):

  SQUEAK_IMAGE			default image name (e.g. "my.image")
  SQUEAK_MEMORY			default memory size (e.g. "40m")
  SQUEAK_LAZY			implies "-lazy" if set
  SQUEAK_NOTITLE		implies "-notitle" if set
  SQUEAK_FULLSCREEN		implies "-fullscreen" if set
  SQUEAK_XSHM			implies "-xshm" if set
  SQUEAK_XASYNC			implies "-xasync" if set

> Do I recall correctly that running an 2.1 image with a 2.0 VM is OK?

A 2.1 VM for i586-linux has been in the usual place for a while.

Ian