About 2 weeks later I bricked my tablet and even after restoring a backup through CWM I was still bricked and stuck at the 2nd Cruz logo after booting. I tried flashing the original firmware but the Android character would fall on his back and give me errors. I dont know why, but after 5 or 6 tries it finally worked.
I had everything back to stock and had to install CWM again. I the got the errors while installing, the android with the exclamation mark above his head, but just like last time I kept trying until it finally worked.
This is just for anyone that gets these errors trying to install an update.zip through stock or even CWM. Just keep trying over and over again until it works.
Edit: forgot to mention, this was a T301
Edit: Just out of curiosity I tried to see if I could flash the 2.0 firmware through CWM and it took 23 tries until it finally worked. It failed about twice while updating boot.img and all the other times it failed updating system.img. Each time the the error message was 'E:error in /sdcard/update.zip (status 0)'. I did reboot recovery after about 15 attempts, because it so many I thought it wasnt going to work, but after that it was a few more and finally successful on the 23rd try. So, it can take A LOT of attempts but eventually it will work.
Edited by 4vic, 29 November 2012 - 03:41 PM.