Alright, well sorry for the confusion but you stated in your question that the Navy told you to take a certain "path" to accomplish this and they were wrong. Therefore, I was merely trying to make sure that I didn't duplicate what they told you and waste both of our times.
But to address the issue at hand. You have the right to file a petition for an upgrade and change in RE code to the Board for Correction of Naval Records. That is your only option. Unfortunately though it is highly unlikely that you will be successful with an upgrade to Honorable if the misconduct in your records was correct. In addition, it is almost as unlikely that you would receive an upgrade to a General under Honorable conditions.
There are a few reasons for this but first I want to dispel the incorrect information that someone gave you about a pattern of misconduct discharge. They are still generally processed as OTH. There might be some circumstances where the servicemember is otherwise a top performer or because the Command doesn't want to take the time to give the member a Board, when the Command might just say OK, let's go with a General, but those are not a regulatory or practice norm.
The other reason why this upgrade is unlikely is because in order to grant the upgrade the Board must decide that the discharge or characterization was an "error" or an "injustice." Living a good life since leaving the military is not, unfortunately, a basis they use for making upgrades.
But again, you have a right to pursue this. If this is really important to you I would suggest that you hire an military law
attorney (you can find them by either contacting your State Bar Association Lawyer Referral Service or by doing a Google check) to assist you in this petition. They know, based on all of your facts, what might work and what won't in a petition.
To start your efforts though you can go to the Board's website and read their information and download the form you will need by going to: http://www.secnav.navy.mil/mra/bcnr/Pages/default.aspx
Please let me know if you need any clarification. I would be glad to assist you further if I can.