OK, I just tried it again, here's the narration of the whole thing.
--> Removed all nandroid roms BUT BB 0.7.9
--> Opened the Bugless Beast instructions page just in case... noticed that they're up to 1.0 not, lol, so downloaded it, erased the old 0.7.9 version from the nandroid folder.
--> Downloaded from ROM (nandroid backup) link on the site -
AllDroid - View topic - [ROM 2.0.1] Bugless Beast V1.0 (2/20/10)
--> Created a folder (now the only one in nandroid) called BUGLESS_BEAST_V_1_0
--> Extracted contents of downloaded rom into this folder
--> Unmounted SD Card from the PC
--> Powered off phone
--> Unplugged phone
--> Started Phone in Recovery Mode - (holding x, then power)
--> Selected wipe data/factory reset, scrolled down to "yes", let it run
--> Selected wipe cache partition, let it run
--> Selected Backup/Restore
--> Selected Advanced Nandroid Restore
--> Selected Choose Backup
--> Selected BUGLESS_BEAST_V_1_0
--> Selected Perform Restore, let it run
--> Clicked del to go back twice, then selected reboot system now
And sure enough - 2.0.1
lol - weird. I could SWEAR I did it right <.<
Thanks man