SUCCESS!
whew, after about 10 or so tries it finally went through the whole thing.
I don't really have an explanation as to what worked for me :/
After seeing error 3200 2-3 times I went into DFU mode, then kept trying. Sometimes it would fail right away, other times it would go through all of the steps then fail anyway. Now it went through all of the verifications and I am successfully on iOS 5