Ok. Down at the bottom of the screen what does it say? It should say serial. Then when you connect to your usb cable it should say usb. If that is the case then you should be able to run the unlocker or flash a rom.
I did a search and found this:
http://forum.ppcgeeks.com/showpost.p...7&postcount=10
Vin had a similar 262 error and was stuck for a while. Maybe do exactly what he did.