Hi all. I joined just to help out if I can at all.
When I tried to get these updates I ran into mad problems with #7 errors as well.
What ended up working for me was getting the stock rom backup files from post #5 from the
Out of the box sticky.
Then I copied them to the ext sdcard in the folder /clockworkmod/backup/StockICS
Rebooted into clockwork and did a restore from external sdcard.
After that finished I was back to everything stock and got the push for the MB3 update.
I flashed back to a stock recovery with Odin, booted up and the update was in the cache folder and it let me apply the update from cache!
Then I kept checking for updates till I got to MI2 baseband.
Once completely updated it was simple enough to reflash clockwork and the oh so sweet kernel from mrg666!
Pretty sure I had flashed MB3 improperly at some point even tho the phone worked fine.
Anyway hope this helps someone.