I would be surprised if it is as much as that given that your site is staying on the same domain, I suspect they are just covering their backs in case you get a worst case scenario, but I'm not giving any promises!
And I should use 3.0 permanent redirect correct?
Nearly, it's a 301 permanent redirect.
I am trying to follow this article: http://www.seomoz.org/learn-seo/redirection
Do you recommend any others that are authoritative?
That all looks pretty accurate to me. The next thing to check is whether the CMS you use gives you the option to use RewriteEngine in .htaccess, or if it has a rewrite module of its own.