We have a Winner!!
I was about to post the exact same after I finished my updated. I'll provide the exact steps that I did
Prior to trying this I too had this show up when I tried to update manually:
"assert failed: apply_patch_space(15916988)
E:Error in /tmp/sideload/package.zip
OK so here goes the steps:
*My phone's model is GT-I9020T from WIND
*I was running the previously leaked 4.0.3 that was freshly installed
*My Phone was rooted and had the bootloader unlocked
*I tried this on my windows system
*Make sure that your phone is plugged into your computer
1. Get a hold of the hR7QFEtn.zip(the leaked 4.0.4 update) and place it in the root of your phone's SD Card( in the / directory of the Sdcard)
2. Download recovery-clockwork-touch-220.127.116.11-crespo.img from the clockworkmod website and place it in the following directory "C:\Program Files (x86)\Android\android-sdk\platform-tools"
3. open up your command prompt and go to the "C:\Program Files (x86)\Android\android-sdk\platform-tools" directory
4. Run the following command: adb reboot-bootloader
5. Once your phone is in the bootloader screen run the following command in your command prompt: fastboot flash recovery recovery-clockwork-touch-18.104.22.168-crespo.img
You will get a "Finished" message on your command prompt informing you that it flashed the recovery image
6. selected recovery option on your phone's bootloader screen and clockworks will do the update automatically for you
I did not have to apply root access again at all. My root privilege stayed the same after the upgrade and I am now on 4.0.4!!
I hope this helps someone out because I was frustrated to no end last night and this morning because of that status 7 error.
I would also have to agree that using google's default recovery is no longer viable for manual updates as they seem to have secured that portion and we have to resort to using our own means.