SOLVED - "Can't falsh zip file"

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I just wanted to throw this out there in the event someone else experiences what I did. I searched the forums and didn't find much out there.

I was trying to flash a new ROM with 3.0 kernal. I went through the routine. Backed up current (reloaded 1.1) ROM. Wiped Factory Rest|Cache|Dalvic Cache and System. When I tried to flash the new ROM I received a message E: cannot open zip file. The KF was stuck/frozen in TWRP so I did a hard shutdown and booted back into recovery. Tried to install the zip again and the same message appeared. Rebooted to recovery again and then mounted USB and put on a few other zip's I had. Each returning the same message that the zip couldn't be opened. I knew I couldn't have had bum downloads of all these ROM's. I restored to my Reloaded 1.1 and rebooted into recovery and this time I wiped everything but System. Installed new ROM without error.

I'm not sure what happened here but it appears that it didn't like when I wiped System. Hope this helps anyone who may find themselves in a similar situation.