I wish I had posted this sooner for some of you. If you have Clockwork installed and cannot complete the OTA update (Update failed msg), the following steps worked for me. I don' remember where I got this info at the moment, but I will find out later.
Basically, using Root Explorer, I went to /system/bin folder and did the following:
1) Find file named "logwrapper" with a label "hijack link" next to it. Delete this.
2) rename "logwrapper.bin" to "logwrapper".
After that, my OTA update worked perfectly after I rebooted. I didn't even have to UNROOT (though the OTA update still removed root) I hope this helps.