it sounds like you're doing it right, I just wonder if you should have gone to ofw from recovery mode after geohot's cfw messed up then installed kakarot's cfw. I wish I could be more helpful but I just stayed on 3.41 hoping for a real cfw with back-up support. It's really weird that all your homebrew is giving you that error.
right, back to ofw then fresh install of whatever cfw you prefer. as I haven't used either one, I really can't say which is better. I mean aren't they basically the same, as in they allow you the abilitity to install signed pkgs on a non-jb ps3.