If it still doesnt boot.
Follow the Below instructions to bring up to CyanogenMod Donut 1.6 Rooted.
PS: If your on AT&T 3G will NOT work.
Mount the USB with the SD Card installed via Recovery. A new PC Drive will show up in Windows
Download the Following
to root of SD CARD
Inside Recovery (Home+Power)
Run Apply SD CARD CHOOSE ZIP
Let that flash
When finished Write Update-cm-126.96.36.199.signed.zip
Let that finish then select reboot System now.
Once that is finished you will have a fresh system. No Hero anymore but the standard Android Donut rooted and CyanogenMod.