Rooting now, Problem, please help.

Ok so I put the update.zip in the root of the sdcard. I named it right, when i checked its properties it was update.zip, not update.zip.zip. well I just wiped my phone and im trying to root now, so i hit install /sdcard/update.zip (deprecated) on sprrecovery and it says

"Finding update package
E: cant mount /dev/block/mmcblk0p1 (or /dev/block/mmcblk0)
(no such file or directory)
E: Can't mount SDCARD: update.zip
Installation aborted."

What do I do now!?

 

i did that. first.

 

ok so i just flashed back to 2.0.1 and it says:

SW Update
In Progress...

its been this way for a couple mins, how long does this take?

 

it finally rebooted, so i flashed back, then flashed SPRecovery, but i still cant install the update. same problem as before.. only this time when I go to reboot the phone, it just stays on the motorola M logo, wtf did I do!? how do I fix this? Please help, if you have good knowledge on how to fix my issue and root my phone, please perhaps give me your i.m. and we can do this step by step. i just wanna make sure i dont break my phone.

 

it rebooted to 2.0.1 then I went to turn it off and open it in recovery mode, then i believe i went into SPRecovery and tried again to load the update.zip but that still didnt work so i went to reboot and it just stayed on the M screen. Im currently flashing back to 2.0.1 to try again hopefully, it is in the middle of the SW update, anybody wanna guide me from here please?