(2) Suppose conversely that we have $\tau \geq \eta_0$$\tau > \eta_0$. Then that means that there is a specific ITTM program with index $e \in \mathbb{N}$ such that when we define $\beta=\sup\{H_e(r)|r\in \mathbb{R}\}$, we get $\beta \geq \eta_0$ and $\beta<\omega_1$. Now the point is that we want to build an OTM program (or similar) which simulates this ITTM program with index $e$ for arbitrary real numbers.
(3) So let's supposeWe want to show that $\tau \geq \eta_0$ was false. That means $\tau<\eta_0$ is impossible. Now takeLet's assume it was true.
Consider any arbitrary ordinal $x<\eta_0$. We can show that there exists a program (no parameters, input etc.) such that it has a non-decreasing variable $v$ with initially $v:=0$ and the "final" value of $v$ is $<\eta_0$ and $\geq x$ (after reaching this final value the value of variable $v$ never changes). Further this final value of $v$ will be achieved at some time strictly below $\eta_0$.
So again consider two real numbers $r_1$, $r_2$ which encode any linear-order on $\mathbb{N}$ such that the ordinal corresponding to their initial well-founded segment are of length $\alpha_1$, $\alpha_2$ respectively (also we intend $\alpha_1<\alpha_2$ under normal input). Now let $e \in \mathbb{N}$ be the index of an OTM program (or similar) such that the final value of the variable $v$ (mentioned in previous paragraph) is both countable and $\geq \tau$. Let's call this final value $\beta$ (we have $\tau \leq \beta < \eta_0$).