Re: beginner....help! status 7 error
1) I found this video on the Internet. Note that I haven't watched it all the way.
https://www.youtube.com/watch?v=5ka5dnPghzI
2) I would assume unlocking the bootloader voids the warranty. Two things from me, though. First, your warranty may already be void since you rooted the phone. Rooting usually voids the warranty. Second, it is easy to re-lock the bootloader. While that may not completely erase your unlock history, most folks at the manufacturers would not look that deep (or so I've been told).
3) I wouldn't rule it out. As I mentioned in my original reply to you, you
might be able to just replace your /system/vendor/sound_effects.conf with the original file that came with 4.4.4 and let the OTA update proceed. Two potential issues, though. First, it may not be easy to find the file. Your best bet would be to ask on forums like XDA-Developers. Second, if you do get the file, you will need to be able to remove the modified version on your phone and copy the original one in the same location (/system/vendor/). Since the /system partition is read-only, you will need to use your root privilege to re-mount the partition for read-write in order to do that. And after you've gone through all that, an OTA update may still fail since your phone is rooted.
4) Yes, LRX21O is the correct factory image for your Nexus 5.
Either method will take some effort. I'm hoping that someone with more knowledge jumps in and tells us, "Hey, there's a very simple way to achieve it," but as far as I know, I can't think of any other way.
[EDIT] What gone down south just posted above may just be what you're looking for.