I know this is going to sound odd but have you thought of just 'pretending' that you are relaxed.
You know like play... act as if... don't worry if you are or are not relaxed. Many people seem to worry if they are relaxed enough or not or if they are in the right 'state'... different people have different levels of relaxation. Initally you might not be as relaxed as someone else thats ok.. just pretend that you are relaxed... follow through with the action of photoreading. Give yourself permission to do poorly for a while... remind yourself that you are learning. Say the affirmations and perhaps add "my photofocus is improving everytime".
Following the steps(3 to 1) and just say "I am relaxed now" don't bother checking to see whether you are or are not... as far as you're concerned you are... no ifs no buts.. and carry on as if you are... then while you are staring (looking with a constant focus)at the middle of the spine like you can see though it (pretend ok?) become aware of the pattern of white spaces the words are leaving as you flip pages... you don't care about the words, they are just there... might even be a bit blurred...thats fine, noticing the 4 edges of the book all the while. Say the afirmation again when you've flipped to the end, along with the others. Then let it go. Don't make any judgement at all about how you think you did.
You may not have photofocus on every page but that's OK... nobody's watching... nobody's keeping score. The idea of pretending for a while is to overcome your performance anxiety. Then all of a sudden you are really doing it.
Do you have the same performance anxiety when looking at stereograms? Most people who had problems with the photofocus stage practiced looking at stereograms. print some out from the web... doesn't matter if they colour and you only have b/w printer.. it works just as well. If you can't see them yet.. give yourself a break and print them out ... it harder to get the focus on the computer. If you can see them... you have photofocus... it feels the same when you photoread. If you don't see stereograms GREAT.... it doesn't matter for photoreading.
Photofocus is really just looking at the page without looking at the words... having an awareness of the 2 pages... noticing the changing patterns of the white as you turn the pages, keeping the 4 edges of the book in view. While remaining relaxed as "you can," Being relaxed for you might just be a "right now I'm just going to look at these pages as I turn them and I couldn't care less about anything else right now and I don't even care if I'm doing it right."
Go easy on yourself. Listen to the memory supercharger tape and the genius one or any others you might have... they all help for general relaxation. When Paul says play with it.. it is because that is the best way to learn it... by making a play of it.
I know my suggestion sounds unorthodox. This suggestion may not be as structured as the method or even the general suggestions on the forum. But if you've already wound youself up that much that you're ready to throw the whole thing in perhaps a less structured method will help you over your hurdle.
We often forget that rules are for testing and when appropriate breaking... Laws are something else 
Hopefully something of what I wrote is helpful.
Alex
