@ christim: from my experience, the ONLY place the phone will show the "code corrupt" is in the bootloader screen. It will show "Boot(loader) 2C6C; and either "Code Corrupt" (and when it does that, the user probably won't be able to power their phone anywhere but to bootloader) or "OK to prgram".
For anyone else, here's my (brief, thank goodness) experience with this problem and how I got 'er done (not easy, nor nice):
http://www.droidforums.net/forum/hacking-solutions/37644-brick-not-brick.html
good luck