Alright, so I ran the MTD_Inspect and it only shows two bad blocks, one in system and one in misc. I then flashed xtrSense, which installed fine, and then tried to flash Flashback and got that same error again.
If I can't unroot it, is there any chance I can just flash a vanilla sense rom and get away with returning it?
I think the problem you are experiencing is due to the bad block in the misc partition.
The issue is that while basic blocks are only 2k+ in size, blocks are erased in 128 kb "eraseblock" groups. And unfortunately, the misc partition is only 640 kb - which means that single bad block takes out 20% of your entire "misc" partition.
So - because your phone has this problem, all of the FlashBack ROMs will fail at the same step.
You should be able to flash the "March OTA" ROM, which is completely stock - but it won't restore the factory recovery. That latter step can be performed manually using flash_image with Amon_RA booted, but you need to be familiar with using ADB.
bftb0