There is a much easier and faster method of rooting now. It's been out a while but recently has been nearly perfected. I did it yesterday without a problem. Actually the one thing to remember is not to "hit any key to continue" on any of the screens when prompted. Just keep going to the next step. Therefore you should have 4 extra windows open when your done.
http://forum.xda-developers.com/showthread.php?t=720565
After rooting with that method I then installed your version 1 to get the updates then version 2 and it worked just fine. Super easy super quick...
You might wish to consider updating your first post to reflect using the faster method of rooting. The current link given had led me to a bug in the phone which made it very difficult to troubleshoot. I couldn't get Google Market to work so it led me to the faster alternative.