I just did a fresh install on a HC1. I didn't download a new image, the one I used was downloaded a week or so ago. But the image on SF is a couple of months old, so it shouldn't matter.
I used a brand new, never used before, 32 GB SanDisk Ultra A1.
I encountered zero problems. (Except for the weakref.py glitch that I ignored.)
Update went fine.
I didn't see any errors about busybox or kyle1117. It just installed
I added the resetperms plugins. Went fine.
Suggestions:
Try a different SD card.
Verify the checksum on the downloaded image.
Let the install finish.