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You need to have a custom recovery (CWM, TWRP...) to flash a rom, you can do nothing with the stock recovery. Download the radio from the recoveries, radios, and hboots thread. I will find a link if you need me to. You can flash the radios or the rom first but download both before flashing either (I would suggest doing the radio first personally so once you get the rom flashed you can sign into google be good to go)
You are correct. You can download the radio here http://androidforums.com/thunderbol...0-radios-recoveries-hboot-updated-9-24-a.html the 5th GB radio is the OTA radio.
Also go on the market and download https://market.android.com/details?id=sa.afv&hl=en use this to check the md5sums to make sure your files are no corrupted.

.. and your instructions were perfect thank you !Go for it custom roms are one of the best reasons to root
Mobile Hotspot not working since updating to the new root stock. Did the free MHS go away?
to accept the OTA:
1)download the recovery that matches the firmware
2)check its md5
3)move to root of sd card,rename PG05IMG
4)check md5 again with scary aliens AFV(avaialble in the market)
5)power phone off,then boot into hboot via power on/volume down
6)chose yes to update with vol up
7)when finished reboot
9)immediately remove or rename PG05IMG
10)collect underpants
11)??
12)proffits!
13)wait for OTA and let it happen. if it fails your best bet is to install the rooted rom as described in post 1
*note in order for it to work,youll need to be on mr2 radios,and the OTA will have to start from the point where it downloads the new firmware,as wiping the caches had wiped it from the phones memory. it may try and install,but wont do so unless it redownloads,complete with the arrow in the status bar,and the green bar in the pull down showing progress.