Aggie......you're my hero......lol
Op, Your best option is to just SBF back to stock Froyo. Don't bang your head against a wall trying to work around this problem. SBF'ing and flashing the rooted/deodexed version of 596 is so easy it's not worth the trouble of trying to find a "work around".
Granted putting all your personal settings, contacts, and apps back in can take some time but it's worth it in the end to have a nice fresh, clean install.
EDIT: Oh, I almost forgot. Make sure your battery is fully charged.