I think step 1 looks pretty suspect too. Have they replaced the solvent with BuLi in both steps?! I initially thought maybe they were using BuLi to protect the primary alcohol as the lithium alkoxide, but it would be an odd thing to do - most people would just add an extra equivalent of grignard.
Searching scifinder for the first step I only found two hits: Hetereocycles 2002, 421 and Tetrahedron 2004 2569, but neither of these papers has this combination of reagents and steps...