The redbook was written based on the 4.1.2 client.  With the 4.2.1 client,
as you mentioned, you are no longer prompted with the 3 questions mentioned.

The error importing the RSM database is a bug in the client (APAR IC29545).
This is supposed to be fixed in 4.2.2 and is also on the latest patches
(4.2.1.15).  The bypass is to exclude the RSM when restoring the System
Ojbect.  Then reboot and restore only the RSM.

Note that the 4.2.1.0 client has a major bug for a lot of people, Scheduled
events show as failed when files are in use (APAR IC31844) - also fixed in
4.2.1.15.

Not sure about the IIS problems.

Tim Rushforth
City of Winnipeg