Every time I started up redsn0w, it recognized the IPSW but when I clicked "next" the blue bar would come up for just a second and then disappear... no error, just poof and gone.
I eventually solved this. Apparently it had to do with the Application Control in my Shaw Secure Firewall, so after turning that off redsn0w connected just fine and my jailbreak worked like a charm.
So... if anyone else has experienced this problem, make sure to check your Application Control and internet settings in your virus protection/firewall!!! It could be the reason why redsn0w keeps crashing.