Oh man, After all day of fighting going from Stock non ICS non root, I had to do the below, I really hope it helps someone
First name that file to update.zip, put on root on your SD card not the phone, I put it on both. Remeber SHOW File Details, not update.zip.zip or just update, "Update.zip"!
1. Install drivers (I assume you unziped Only the 1.7 utility)
2. Rename and install/copy update.zip on "Your" SD not the phones but external, Copy to both is what I did
3. debug usb mode, run "ADMIN" File .bat from 1.7 utility, Follow instuctions #1 first and kept getting e:data error (7) etc..
4. After AP Fastboot "Utility Intructions", if you hold -+ vol together go to recover, and hit up vol for enter, Wipe the phone, clear, reboot
5. Go into "AP Fastboot" run Option 2 from Util, Repeat step 4 when Utility says so
6. phone will freeze on power off, DONT PANNIC, Hold VOL +/- and Power watch flicker
7. Power and reboot into Recover as explained in step 4 repeat it, doing wipe. Dont reboot yet
8. Install Update.zip from external card, let it run till finished about 10 min, reboot and enjoy!!
Hope this is clear enough and helps someone else.. This is what worked for me.. If someone can see mistake, please feel free to fix it, I apologize I was in a rush.
Some maybe confused here, power and down will get you into AP Fastboot, the Volume up and down will get you into a menu for recovery/AP Fastboot, etc etc.. Up key on not sure but i think recovery.. before hitting power of course...
I just tried this method and I thought for sure it was going to work, I was actually getting the ICS recovery (android with spinning sphere in his belly) in the background instead of the GB one, but low and behold I got the same damn error (below) I have got for the last 12 attempts...yes 12 folks! Two days of my life I will never get back...and still perpetually stuck on GB .181. I have rooted, ROMd, and themed the life out of 5 phones over 3 years and NEVER had this much trouble. I'm chalking this up to faulty LTE hardware that is causing this cluster fu*kasset failed: motorola .motoflash("/tmp/lte.img")E: Error in /tmpsideload/package.zip(Status 7)Installation aborted