OK. That's hopeful!
Now, because it says not allowed, your bootloader is not 'Security OFF', hence preventing the download of the image.
fastboot flash recovery recoveryimg.img
Although I doubt that will work. Also, what version of HBOOT do you have (appears on the white Fastboot screen near the top)?
Do you have a microSD card reader? If so, try making a goldcard and putting that into the device's slot (I know you can't get it to work in normal mode, but bear with me...)
Then try that process again with fastboot flash or fastboot boot. If still nothing, try an original RUU for the HTC Hero. (Use an old versioned one, such as from this thread - http://forum.xda-dev...ad.php?t=559622
and use the FIRST WWE one. That should overwrite everything on your phone (including any user data unfortunately
) and give you a stock Hero.
The ROM should also be old enough to also flash an unlocked bootloader (allowing fastboot boot) and you can use AmonRA recovery from there to wipe and do update.zip.
Let me know what you think of doing. I'll be here tonight if you have any probs.
Edited by pulser, 05 January 2010 - 06:33 PM.