Where EXACTLY on your sdcard did you put the 5 files?
If you placed the files directly on your sdcard (and not in a folder), turned on USB debugging, and typed the lines correctly in the terminal emulator, then there shouldn't be a problem.
Sorry I can't be more specific, it's hard to figure out the problem without seeing your phone
I will add that you might want to start over from the beginning.
Go to Settings -> Applications -> Manage applications -> Running -> Terminal Emulator and force stop.
Download the zip file and extract it to a new folder on your computer.
Remove the SD card from your phone and using a usb reader plug it into your computer.
Open the folder where you extracted the five files, highlight them, and copy them directly to the root of your sd card. Do not place them in any folder.
Open terminal emulator. You might want to go to settings for terminal emulator and change the font size to make it easier to read.
Make sure USB debugging is on.
Proceed to step 3.
I am a brand new droid user, and these instructions are GREAT! that wireless teather app is worth a million bucks.. but how do i remove all the bloatware now? blockbuster, amazon, etc. do the roms for the d2 work on the d2g?.. really i just want to have a nice stock android, that runs super fast, and ill add any software/apps that i want.
any help is appreciated
The best way to remove bloat is Titanium Backup - it's in the market.
Make a backup first and then it has the option to remove packages like Blockbuster, etc.
I keep asking about custom ROMs but I don't think anyone has any yet. Some of the Droid 2 ROMs will brick the Droid 2 R2D2 edition so I think you should be very careful.