I have been following along at home and have been building with a 4.7 tool chain I built from source after it was released. I haven't ever gotten the rom to progress past the upgrade notification.
I figured i was missing patches or possibly because I can only get the kernel to build by itself, not within a CM9 build. Both your and krylons local.manifest are erroring out on me.
But yeah, consider this another report on the tool chain while also encouraging you to continue with the technical updates. I known they take time, but they are being put to use.
have you tried deleting the file /system/lib/hw/audio_primary.encore.so <--- this is totally from memory and not likley to be the name of the file.. but it's something like that. in case it's getting stuck there?