It took me a few trys, but if you read through the entire post youll find an answer.
My fix was simple - after i pushed all the items and ran ./rageagainstthecage and it kicked me off adb, i closed it all off. by this i mean I closed the application, and also checked the task manager (ctrl + alt + del) and looked for adb.exe looking in the process. It stayed dormant, so i ended its process.
Once it was all closed, I reopened the SDK Manager, then opened another command prompt.
If your having problems navigating or locating "adb", simply look through where your sdk is installed, and look at all the folders. for me, i started with a :tools: folder, but there wasnt adb.exe in there. After I ran the SDK manager and updated everything adb.exe was in a folder called platform-tools. This is where you should copy rage...,su, and busybox.
back to the command prompt - navigate to the folder with adb and run adb shell.
this worked for me - Win7 platform. Im pretty sure it will work for you too. I tried z4root - but again, it would not give me root access because i didnt realize that adb stayed dormant.
Use adb's command prompt - itll help you understand the process better (as is recommended). I know this thread has been beaten with a stick many times, but i hope i helped someone out