401 Error solved
I have re-rooted using the Clock Work Mod (CWM) from this thread:
http://forum.xda-developers.com/showthread.php?t=1346748
At first i could not get a boot from the "Boot" SD I had created then I recreated the image on the SD using WinImage (instead of image writer) and made a point to select "Restore Virtual Hard Disk Image" to SDcard.
After that all went well. Still had the 401 network error, but pressed on through all the steps as instructed and all is well. YouTube app no longer works but I know I can re-install if needed but cant watch vids on this device any way.
I want to emphasize that the Gapps will not sync until after final zip is installed. The directions already say that but it could be clearer for us poor souls wondering what we are looking at.
Thank you for your work on this root. Glad to be able to add some basic function to the little reader.
Other Issues I have, Original browser Force closes and Calender app has the SD card installed image super imposed across calendar. Weird.
Running many apps including Office Suite.