I wanted to do a nandroid backup and followed the insuctions in the first post including the amendments regarding ADB
I'd go back to the recovery rom by using the power and two volume keys to only be presented with the same 4 default options.
What I didnt know was that the flash had been succesful every time and that I actually had choose the option to update the device using the update.pkg to see the extra options (including nandroid)
Paul can you please update the instructions and make it clear that this is the case. It took me over and hour to figure that out since I was worried about accidentally restoring using the update.pkg file