YOu have to 'mount /system' in recovery before you can see what's on it!
I did ? Back on stock everything again now, do I dare try this again .... lol
UPDATE: I dared and it worked fine this time. Only thing I can think that is different is that I hadn't done the OTA to 4.1.1 this time (did get the update popup after a few mins. but clicked on update later). So SU in place and just installing custom recovery.
Nice one Paul
Edited by ChazW123, 18 July 2012 - 01:55 PM.