Just tried my own method and failed...

I got the error code "80029563" which is different to the one in the vid (8001003

Searching around the net I found that:
-->80010038 is the code for corrupted installation data
-->80029563 is a code that usually occurs during PSN downloads and is believed to be caused by the ISP
So, my connection was in local (I believe) but I have a funny set up:
[B]PC[/B]--[I]ethernet[/I]-->[B]Router[/B]--[I]wirelesss[/I]-->[B]Laptop[/B]--[I]PS3proxy[/I]-->[B]PS3[/B]
I removed the cable from the modem to the router so I had no internet, but still had file sharing across the network (which is why I think it was in local mode). So my problem originated from the ISP and the fact that I didn't have one because I had no internet. Which means that in any circumstance means that putting your network in local mode won't work. (Unless my network wasn't in local mode in which case I need some help on how to set it like that)
Kill_streak I think your problem comes from "incorrectly" editing the patch in hex. Now the reason I say "incorrectly" in quotation marks is because the more I think about it, the less reasonable it seems that by editing the numbers dezired stated in his (non-prem)tutorial will enable you to hack the patch. What I'm trying to say is that the original tutorial contains false code which conflicts with the patch authentication and therefore gives you the error. So, I think that the problem lies in how we hex edit the patch and not how we reinstall it to the PS3.
If that makes sense to anyone :p