Problems flashing the new 3.29 update

[nomaxtech]

I've seen numerous threads on this issue but none of them contain a solution. Here's the deal...

I am running 2.2 (3.26) rooted. I am unrevoked/NAND'ed and have Clockwork Mod recovery. I've tried the update through the system update but after a reboot it goes to a screen with a white triangle, yellow exclamation point, and a little android with a progress bar. The progress bar gets about 20% full and then disappears and the phone hangs. I have to remove the battery.

If I download the update and put it on the SD card and try to flash it with the recovery, it gives me error staus 7.

Anyone have a solution? Thanks.