After so many tries and frustration I finally came across the information below and it worked like a charm 
http://forums.androidcentral.com/verizon-droid-incredible/134246-second-gb-update-patch-wont-reboot-issue-solved.html
Can't say this will work for everyone, but it worked for me.
- Boot into recovery
- Press and hold Power, Choose "Restart" option
- When screen turns off, press and hold Volume Down and Power
- When the white HBOOT screen appears, use the volume button to move down to “RECOVERY.”
- Press the Power button to select “RECOVERY.”
- When the triangle and exclamation appears, hold the Volume Up and Power button at the same time.
- Using the volume button, scroll down to “Wipe cache partition” and select it.
- Select "Reboot system now"
You can now wait for the update to show up again, or try one of the methods in the post: For those who want the second GB update/patch to get the update again. It should reboot this time. Beware, it will stay at the Droid Eye screen after reboot for a while (~5 mins), but eventually, it did get installed. Be sure to make a lot of space for it though...