Sounds like you are doing it wrong.. MAKE SURE YOU ARE ON the STOCK ICS firmware, I'm not really sure of it will work on the Chinese ICS firmware, If you flashed that you might have been quite screwed.hmmm.... didn't work for me. CWM looks for update.zip so i renamed it as such. installed and rebooted to CWMR, no touch menu. same old blue colored menu. install su-binary, stuck at unmounting /system = not rooted.
The first recovery you boot to is the Standard Android Recovery mode, You are supposed to place the files in external storage and from the Stock Recovery, choose Apply Update from external Storage.
Once that is done you should be booted to Touch CWM recovery and from now you have to use the touchscreen to navigate around. Then choose install zip from SDCARD and install the SU-Busybox_installer.zip.. That should give you root
Done