I found a really easy way to flash the new recovery. My fastboot didnt seem to have an option for a terminal so I thought of this genius yet n00b way. Here are the steps.
Steps:
1. Install clockworkmod from market.
2. Flash Clockworkmod recovery from Rom Manager.
3. Navigate to clockworkmod/download/koush.tandtgaming.com/recoveries (or where ever your recovery was downloaded to. This can be done in File Manager, Astro, or Androzip.
4. Mine was "recovery-clockwork-2.5.1.3-vision.img". Rename it to "recovery-clockwork-2.5.1.3-visionXXX.img" or something obviously different.
5. Download clockworkmod 3.0 from hereish:
http://xdaforums.com/showthread.php?t=893933
6. Move your recovery.img to clockworkmod/download/koush.tandtgaming.com/recoveries and name it recovery-clockwork-2.5.1.3-vision.img
7. Go into ROM Manager and Flash Clockworkmod recovery, it will say its still 2.5.1.3 when your done. Reboot into recovery and you'll be welcomed by a new orange 3.0
More than likely i could have done it much easier but it just kinda clicked and i didn't wanna bother with fastboot as it feels clunky on the G2.