Dude you arent running update.zip
ignore that always!! looks like you wiped all your data though..bummer
choose the option below it..
*install zip from sdcard*
then find it on your sdcard and load it..i believe that update.zip option is for if you fubar your recovery it lets you load the clockwork..im not sure its been awhile since I had to run it but ignore it..you need to choose the option that lets you pick the zip from sdcard.
good luck..