Same problem.
It bails after formatting.
Downloading nitdroid.manifest....Failure. Bailing out.
I have tried on 3 different networks,same problem.
transfered all files using WinSCP.
I also tried the manual method from the Wiki.
Wont go any further after running command: bzip2 -d N12_UMay.tar.bz2
I also tried the revised .manifest by german.cadenas
Still no joy.
Any ideas?

Edit: I managed to get it working. When the bzip2 command hangs i just waited a little longer and it unpacked.