A modchip only enables you to run burned backup media. Recovery disks are custom disk which are fakesigned, and they require the system ios to have the trucha bug to read them. So a modchip does not help you boot recovery disks without the trucha patch.
You are giving up on bootmii boot2 to quickly. If you installed it, there is nothing else you need, there is nothing better than bootmii boot2. It sounds like you are getting the double flash at boot, and you said you installed it, so why the hell is it not booting.