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@Fox
Sorry, I forgot to look at this thread, it would have been thanks, but in the end I went round to Sumos and used his. What I was trying to do failed anyway, in the end I reinstalled Snow Leopard, made a bootable Lion USB with it as a rescue USB, wiped the HD again, recovered using my time machine backup to 10.7.1 then upgraded to 10.7.2 the right way, which was actually really easy and worked perfectly first time.
So everything is now good again and I have iCloud, although I'm not sure what I'm actually going to do with it, being Google Mail/Calendar/Contacts dependent.
I'm very impressed with time machine FWIW, the backups are well worth making. If you have Lion it's also really worth having a bootable Lion USB drive, just in case.