Are you following the op to a T? Are you using tenfar's BSR and not android recovery? You do not have to rename the cm7 file.
4. Install the Motorola Droid X2 Bootstrap Recovery (BSR). See MoonShadow-NM's guide: HowTo: Perform a bootstrap (or nandroid) backup and recovery of your Droid X2
5. Put both the Google Apps zip, the CM7 zip, and dragonzkiller's patched BSR apk on your EXTERNAL sdcard.
6. Boot into BootStrap Recovery. (You should know how to do this... See item number 4 above as a reference.)
7. Install the CM7 zip.
I followed the directions in step 4 and got to the bootloader that way to set backup and now use the "system recovery" in my app drawer to get there.
if I am understanding you correctly that isnt how i am supposed to get there, correct? I am supposed to use this file:
Patched BSR APK for ALL versions of CM7DX2
I have that on my SD as well, do I need to run that from my file manager or something before going into recovery?