I had your recovery utility ver. 1.2.5 installed on my Ally. I tried to install 2.2.1 using adb shell and the seven lines of code shown in your original post above.
At the 5th command (the mv line), I received an error message: File not found. I checked the directory, and install-recovery.sh did not exist, so it makes sense that it couldn't be renamed.
At the next line (the flash_image line), all the instructions scrolled up the screen with the message "Out of memory". This makes no sense. There is 20MB free in internal memory.
Please advise how to correct. At the moment, if I boot into Recovery, all I get is a blue screen, and I have to pull the battery to proceed.