I don't remember I think the local file explorer on GB could see the local cache. I can't believe Fastbooting didn't help, along with the factory reset. I think the best thing to do honestly would be to download the zip file manually and put it directly on the external sd card.
Once that is done, do a FDR for good measure and try to apply the update zip from recovery manually. If that does not work then I would recommend using the 1.7 utility to fix a broken ICS install and run that then try the install from recovery that way.
My advice would be, and take this for whatever it is worth.
Boot into recovery, power off the phone press and hold the volume down and up button and press the power button. Once you see black screen and white letter, press volume down to go to recovery and volume up to select it. Once you see the Android guy with the open chest press the volume up and down button, this will get you to the recovery menu. Once there volume down to wipe cache and press the power button to select it, once that is done reboot the phone.
Once you are at the phones main menu, read and follow the instructions in this thread.
Doing this "should" get you to ICS as long as there are no other problems that we are not seeing.
If option 1 does not work for whatever reason you can download the 1.7 version of the Razr Utility, this is done with the consideration that you still have the update zip on your external Sd card that you downloaded using option 1.
Extract the 1.7 Utility fully to the root of the C Drive and run the bat file to load it. You are going to want to run option 2 and follow the instructions exactly as they are laid out in the Utility.
There is going to be a point where you are going to see the little Android guy and it is going to say loading files and a status bar, this is VERY important that you let him do his thing and it will reboot to a black screen (this is normal don't freak out). Once that happens just do a hard reset again by holding the volume down and the power button, as soon as the screen flashes hold down the volume up and down button to boot into AP fastboot mode and continue to follow the instructions.
Now this is just my opinion what I "think" would get you working, but take it how you would like because if something goes wrong I don't want your phone to brick. Which I don't think it will because I myself have done both of these methods and they work just fine, they are just a matter of following the steps exactly. So if you are worried about that then maybe wait and someone else on here will have another suggestion.
Sorry I am at work right now so if there are some spelling or grammar errors I am sorry, or if something does not make sense let me know and I will try and help in between helping other customers today.
OK so I did everything and while it was installing I got the following:
"assert failed: motorola.motoflash("/tmp/lte.img")
E:Error in /tmp/sideload/package.zip
I'll try the second option and let you know how it goes
So just to update, I called Verizon and explained everything. I then got connected to two tiers of Motorola Agents. They were clueless and they each made me manually update to no avail as expected. I then got a call from the first Verizon Agent asking if my problem was solved and I said no. Then she connected me to the next tier Verizon Agent to talk replacement. He seemed the most knowledgeable but he couldn't figure anything out either. They're sending me a replacement in the mail, (hopefully not a heavily used refurbished) and hopefully my problems will be solved. Thanks for all of your assistance over the last few days. I really appreciate it and their wasn't much you guys could have done since apparently it was a manufacturer's defect. Thanks again everyone!
Sorry we could not fix it, hopefully the replacement will work out for you.