It was on an XP machine, not sure what the problem is...
Let make sure that we are talking about the same thing here when I mention the RUU what I meant is running the ROMUpdateUtility.exe.
Here is the process that I followed first I ran your executable which extract the file and walk me through a series of step everything is fine until after the part of disconnect and reconnecting my device. After I did that the ROMUpdateUtility.exe pop up after checking the require box and got it to run it come back with a 260 connection error everytimes.
So I tried that a few times even restart both devices still no lucks so I thought to myself let see what's really going on so I peak at your bat file and I saw that after the disconnect/reconnect is where the RUU got invoked.
So I invoke the RUU directly (before running your bat file) to see what happened... Anyway after poking around I finally got the RUU into a "recoverable mode". This will loop around and offer me a chance to recover the upload process they actually walk me through the process of putting my device into the bootloader mode manually.it start to upload the images into the bootloader but complain something about the rom not signed I think (I don't remember for sure). Then it goes back into recovery mode.
So this time I got clever I ran your bat file up to the point when it said disconnect/reconnect and got your bat file to put my phone into a bootloader mode. Then I when back to the RUU that was still in the middle of the recovery mode and tell it to try again and it work...
So my speculation is that something with my set up prevent the RUU from dectecting that my phone was in the bootloader mode (unless if it was already in recovery mode then it doesn't goes through the checking process) and it will work. Sorry for the long post I hope it make sense to you