OK, I put the phone in boot loader mode and plugged it back in. The computer did not load a new driver but the serial at the bottom of the phone screen switched to USB. I think I saw it load the driver one of the times that I hit the reset button while it was still connected. It shuts down right after I hit the flash button. I can click thru the next couple screens while the phone is starting back up. When I hit the next button after it has identified the current version and the new version, it shuts the phone down again and I get the error message.
Maybe I should try my other computer.
Thanks for helping me out on this.
EDIT: I transfered everything to my desktop and tried again. I am now sporting a freshly unlocked phone. Thanks for helping me out Razor. Looks like my netbook is in for a hard reset of its own.
