vwdetour,
First off, your YouTube video was
VERY helpful!

[OMG, I wish everyone could do that!--you saved us about a thousand questions and hours of time

].
Secondly (no real order to my thoughts here), I'm hoping that your error here:
ERROR: Google Factory Image is Corrupted. Erasing...
Erased. Please try again later.
is simply a matter of having and using a partially downloaded (i.e., corrupted factory image). You need to be sure to double-check the MD5 sum (or SHA1 sum) that's listed on the factory downloads page with what you actually download to your PC (I think the proper command is
openssl md5 <filename> or
openssl sha1 <filename> depending on which you are comparing).
If the checksums validate, then I'm afraid/guessing that you might indeed have a hardware issue (probably with your internal memory).
Thirdly, the fact that you are past the boot animation (several times) and actually see an interaction/setup screen tells me that you are at or nearing the point where the various hardware devices are being initialized and checked (i.e., the "bump" you feel and hear is the haptic feedback hardware being triggered (probably two-fold: as a test and an indicator). I wonder if you're getting a true hardware issue/failure that makes the kernel panic, etc.
Fourth, I'm also guessing that the "rules.d" stuff you guys are talking about have to do with setting-up the USB access from/for Linux? I never had to mess with any of that on my 10.04 setup...just invoked the adb and fastboot commands via sudo first and all worked fine.
~ ~ ~
If this were me, I'd start with a fresh factory install (from the factory images)--but bounce it off of us first before you start (try to get a clean/verified factory image downloaded first).
Failing that, since seem like a pretty savvy user

)), we should be able to install and use the kernel and/or logcat tracing boot animation from another thread we worked on (gotta go dig that out). That might allow us to see what's going on with your device deep in it's bowels.
I'll let you guys digest that while I dig-up some other things...
Cheers!