I posted this in the xda thread, but I'll re-post it here as well in case someone checks this more often:

Just got all the gapps working, all I had to do was install them normally then convert each to system files.

However, now I'm running into the problem with the accounts, whenever I try to sign in I get the network error, I tried the youtube workaround (didn't want to do that first as it was mentioned that it could cause sync issues), but now it just comes up saying that it has encountered an error and needs to close(on the terms acceptance screen I think).

If anyone has any idea what this might be that would be great, I can post a log and any other info you would need/want. Thanks

Oh, should be noted that I did not use a backup from another phone, but just the gapps posted in the zip file above, so I might be missing some required data...

Also, if we can get this to work, it would mean that people would not need a rooted phone(they may need a paid copy of titanium backup, but there may be ways around that as well).

Might as well answer this as well:
No, I don't believe that it does remove the OTA update, though I doubt there will be many if any more of those, and the worst that could happen is doing the OTA update would remove the root, however you could always just re-root the device afterwards(I doubt we will get anything past 2.2 in the near future, so rooting and re-rooting should stay pretty easy for now).

And yes, using the golden update file will restore the device completely, removing all data, including your root, meaning the device will be the same software wise as the day you got it.