the below method fixed my problem described above, for anyone interested.
Originally Posted by KevlarGibs
I didn't create the file, but they should be able to update it easily.
in the meantime, open the folder you extracted these files to.
(i'm assuming you are in windows 7 here)
hold Shift+right click a blank spot, select "open a command prompt here"
type: adb shell
when you hit enter, the next line should end with a #
if it's $, run the oneclick again, then start this over
once you have the # prompt, type
mount -oremount,rw /dev/block/system /system
rm /system/bin/su
rm /system/xbin/su
hitting enter after each line.
don't worry if it says it can't find the file... the point here is to get rid of it anyway
then run the oneclick again. worked for me

Thanks for helping out. I put a link to your post in my OP's for the DX crowd.