Now that I look, the steps I take are slightly different.
I don't do a resync. Where you have A -> B then B -> C, then once you've finished initializing B -> C, then you edit the snapmirror.conf file on C to reflect the new relationship from A -> C.
After that, run a snapmirror update -S source_filer:source_vol new_dest_filer:new_dest_vol
Also, I don't delete snapshots on either destination until the relationship from A ->C is going. THis may be why you get your error (you are deleting the base snapshot).
Try this basic procedure:
1) Create your destination volume on C as he states above.
2) Perform an initialize from B -> C. Whiile this is happening you cannot update A -> B.
3) Once that is done, edit snapmirror.conf on C to reflect A -> C
4) Do an update on C: as in my example above.
5) If that works, then clean up by removing snapshots on A that refer to B, then updating to C again.
6) Once you are 100% happy, delete volume on B.
Hope that helps.