image.bin file is not the image.bin file you have. Read this first and obtain firmware images here.

You will need to download the firmware images first and place them in the same directory as the flasher tool and then type the exact name of the firmware image you download (assuming you should always get the latest one which is PR1.3), you then follow the guide.

Though in theory I really do not think cold flashing using that technique is required. I have had successes with flashing my N900 just by removing battery for 30 or so seconds, replacing the battery and quickly holding down the u key whilst the microUSB cable is plugged in on both ends (i.e. computer and N900). I have successfully flashed it entirely with the regular flashing method rather than cold flashing though I'm using linux.