I managed to resolve, so if anyone is still having the problem, this is how to sort it.
Fastboot the Hero (press and hold the back button whilst powering on). Connect the phone to the USB cable and to the PC. Then go to device manager and select the HTC Hero in the list and update the driver. Choose the X64 drivers that are attached in the first post.
You should now be able to just run the RUU exe file and it should work....at least it did for me.
That was the longest part of the whole process, its taken me 3 hours to do and hopefully it will be worth it. My phone is just booting up with Villain4Beta2 (takes ages to boot up!!)