I had to do it similarly... but... I had to issue this command:
/system/bin/chmod 777 /sdcard/rage...
(btw, there isn't much point in trying to do a 4777 or 4755 on the first app as you don't have root (the 4xxx is trying to set "setuid" on the file...)
I found that after crashing the update, I had to run all commands with /system/bin/xxx to make them work as the path was no longer right.
(that may have just been me...) this worked pretty straight forward after re-reading those notes a few times...
Now if only I could get the deodexed rom to be happy on my phone... ah well... I'll give it a couple of days...