Clockwork recovery update.zip

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If i understand this correctly. Was I supposed to keep the update.zip the rom manager put on my sd card? That was to allow me to return my recovery image back to stock if needed?

You need the update.zip to launch the clockwork recovery mode as opposed to the built in one.

if you override/delete it like I did you can find it in \sdcard\clockworkmod\recovery-update.zip
just rename it back to update.zip and put it back at the root of \sdcard