Okay, sorry I haven't been back all day!
Are you trying to install it as a zip file?
Here, I wrote this for a friend. This should help you. If you follow these directions then you'll end up with the latest Froyo with a new baseband (there is newer out but I'm waiting to hear about other experiences before using it), a kernel that will allow you to overclock, and a nice clean black theme. If you don't want any of the above, just skip that file/install and the rest will still work. Hope this helps:
How to install Froyo (Leak #2) on a Droid that is rooted with Clockwork Recovery:
Your data will be erased so you will have to reinstall apps and change settings again.
Your SD card will not be touched.
Needed Files:
Froyo Leak 2
Optional Files:
1GHz Kernel
New Baseband
Clean Black Theme for Froyo
(Screenshots of theme
here for you to decide if DFW or DNFW)
Directions:
Put the baseband, kernel, and theme (if you decide to) zip files on your sdcard.
Then on your computer, unzip the Froyo file and it should give you a folder (2010-06-08.blah.blah.blah). Put that folder on your sdcard in the /clockworkmod/backup directory. You should already have some other in there so you'll know you're in the right spot. I recommend renaming it to 2010-06-08-FROYO or something so you can find it easier later.
Now, on your phone, go into Rom Manager and flash the recovery (first option) once. Then choose the second option (Reboot into Recovery).
Go to nandroid > backup and let it do its thing.
When done, go to the main recovery screen (power buttons goes back if you forgot) and go to "wipe data/factory reset" and then Yes.
When thats done, go to nandroid > restore and pick the one that you extracted earlier. Let it install.
When THATS done, go to "Install zip from sdcard" > "Choose zip from sdcard" and then pick the baseband-update.zip file. Let it install. Then do the same for the kernel zip file. Then if you chose to install the theme, do that also.
Now you can go back to the main screen and choose the reboot option. First boot might take a while, then you'll be in Froyo goodness with an overclockable kernel.
To install flash, install this APK like you normally would:
http://www.megaupload.com/?d=HO8UZSDW
Hopefully I didn't miss anything.