i had a similar problem (message saying gapps stopped during the 1st reboot, home screen frozen), once i got 211 to flash.
i went back into Recovery and did a factory reset.
appears to be working though the launcher seems to be crashing with some regularity while re-downloading all of my apps from the Play Store
I had the same problem where the home button wouldn't work. For what ever reason I was thinking Factory Reset from the setup menu. That doesn't seem to be the same reset as doing it in Recovery, although it did work in restoring the home button. What also happened was it took roughly 5 minutes to reboot, wipes out all of your account settings as expected, but the strange part is it started updating and re downloading absolutely every app I was using on GB. That was a big win. Only problem it created is that it placed every app on the home screens, a little clean up work to do bu in the end easier than re installing everything. ICS all of my apps reinstall WIN.