Hello, I'm involved in the same process as you at the moment. Maybe my experience with this will help you, maybe not.
I've just successfully created the .iso image. and it did seem strange at first, but I finally got everything to work. It may be that your connection is wacky and that might be causing your frustrations. I'm not terribly proficient with bashes or shells of any sort. I'm a Mac refuge living in the Windows world and an artist to boot! The first step was getting the addresses to the two servers. The first was the package server, the second was the Image server. I found it useful to track down the exact location of the files i wanted in the web browser before entering them into the dos shell. I used, ftp.us.debian.org/debian/ for the package server and I tell you! What a connection! I downloaded the entire dist in just over 3 hours. I was of course doing this at work with a lovely t1. for the image server I had to find a rather nasty long address like; rsync.kernel.org::pub/mirrors/debian-cd/2.2_rev3/i386/binary-i396-1.iso . After getting these two straight I didn't seem to have any problems. I bet your connection might be a problem. If you get stuck on Getting. You might want to try using a different mirror to download from. I don't know how helpfull this is, but I hope it helps. Maybe someone who know a scrap about this crazy linux stuff will have more info. ~Israel~