I've removed that app from this release. If people want it they can deodex it themselves. It looked a little dodgy to me... (although rather a treasure chest!).
There's something really screwed up with you recovery image...
"Modified by MIUI.CN" - WTF?
Reflash recovery using fastboot and try again...
And yes that was the problem. Thanks man.
I reflashed the recovery using clockwork mod. and tried again. "It worked excellently"
And for everyone out there using this ROM. If u go to the Green UP button icon(i think its their OTA Updater app) and press menu and click on the last option.('something in chinese' recovery) then yall will have the same problem that I had.