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Hi Harry,
Try the attached script tool. I just modified the one I made a few weeks ago to add the extra steps you wanted. I saved it as a 10.0 toolbox so it should work for you.
I authored the tool in straight Python...You can see the source code if you right click on the script tool and hit Edit. Or you can open up the ClipRasters.py script. Most of the tools I used are ArcGIS tools that can be done in ModelBuilder with the exception of the SearchCursor. That is only available in arcpy.