It would be helpful for many if the OP could edit the instructions here to explain the problems people are having. It is hard to find the .tar image that sextape hosts that will do what most are trying to do (Return their phones to Verizon).
This method did not work for me, but I believe if I would have booted into CWM recovery (before I started) and done a factory reset the method here would have worked fine. I am stuck on Verizon boot screen after flashing this .tar in ODIN 3 times. Now I am waiting what is eternity to download the sextape .tar file here: http://www.sxtpdevelopers.com/showthread.php?t=237
I hope that works.
EDIT: I flashed it one more time and finally got it to boot into recovery. Did a factory wipe and wiped the cache partition...now tried another flash of the .tar found here. It booted into recovery before getting stuck back on the Verizon boot screen again.
In recovery I have the ! RED TRIANGLE and it says
"E: failed to mount /data (Invalid argument)
can't mount '/data' (Invalid argument)
E: failed to mount /data (Invalid argument)"
SOLVED: Did one more factory wipe in recovery and a cache partition wipe. After I hit OK on the cache wipe it immediately rebooted showing the ! Red Triangle and then VOILA somehow it worked after I let it sit for like 5 minutes. When I got to the stock setup wizard, I immediately backed out and put the device into airplane mode to stop the OTA. Then I did a factory reset and I am off to VZW to return this POS and go back to my Galaxy Nexus until something better comes out with an unlocked bootloader.