Could it be that you have some update .zip on your sd card that it tries to install when you go to hboot?
Since you are s-off I would recommend that you change your recovery to 4EXT Recovery. Check my sig if you are interested.
About the Runny ROM, I'm not sure about the requirements. Check the thread. It will say if CM7r2 hboot is a requirement. I think it also supports Stock Hboot. A fast sd card with an EXT partition would be mandatory for the ROM afaik
LG Nexus 4
HTC Desire (no longer in use)
It feels so dirty flashing without wiping.