In case someone with the same problem finds this thread in the future, I want to clear up some missing, outdated or just plain wrong info:
- verygreen's SD install, by far the most common SD install, does not use ClockworkMod Recovery. Verygreen made his own recovery which only installs .zip update packages, and does it automatically, deleting the .zip afterward.
- the recovery in verygreen's latest image can fly by very quickly for small packages like gapps or a kernel update, after which it will boot into CM7. Don't assume you didn't make it into recovery: go into settings>accounts and see if you can sign into a google account.
- the button-acrobatics are no longer necessary. If you have CM7 installed, just hold the power button for a moment, release, and in the resulting pop-up menu, choose Reboot and then Recovery.