I'm having the same side load error. I'm on stock LJ7, rooted, with stock kernel. I've downloaded from Google servers multiple times and from the link in the OP.
Thoughts? I'd prefer to just be able to install the OTA update zip instead of doing a full wipe and installing the full rom and/or installing the radio/kernel separately.
Not sure if you got yours going yet, but here's what I did using the OTA update zip from freeza's stock files. Note...i had CWM Recovery v126.96.36.199.