I just took the .zip out of the file name and it worked for me!
Thanks for the heads up man!
I have Eclair 2.1update1, I tried taking the .zip off and placing the file in both SD files just in case, even renaming the SD folder to sdcard, I still get the error when I reboot the phone and select "reinstall packages". I double checked the files are where they are supposed to be. (Samsung Vibrant and using a Mac)