Has anyone ran into the problem of not being able to install Froyo from the SD card? In the tut it says to place in on the root of the sd card, change the name to update.zip and install it from SPRecovery.
From there I
1. allow update.zip installation
2.install/sdcard/update.zip
I get an error message when its verifying package that says
E: cant open /sdcard update.zip
no such file or directory installation aborted.

does this happen when you already have a custom rom on the device? Or is there something else I am missing?