Don't think it worked. I applyed the update.zip and it just says it installed root and superuser.
Sounds like you still had the update.zip file for root/superuser access on the root of your sdcard. I think that if there is an update.zip present in the sdcard root, it supercedes anything in the cache folder in the phone's internal memory. The "apply sdcard::update.zip" function in clockwork recovery does just that..... it looks in /sdcard and if it finds "update.zip" in that location, it installs it.