You need to use img flasher n flash an img of cwm.
Cwm img [never update this, this is the only working version.
http://db.tt/zC3gY0jF
Download this Recovery.img and the flash_image.zip unzip the flash_image and place it and the recovery.img onto the root of your sd card.
then download a terminal emulator from the market i have provided a link to one for you.
next open up the terminal emulator and type in the following
su
mount -o remount, rw /system
cp /sdcard/flash_image /system/bin
cd /system/bin
chmod 777 flash_image
flash_image recovery /sdcard/VM701_recovery.img
reboot recovery
Now backup your sd card to the pc.
Then reboot into cwm and backup your current system
Then wipe data/factory reset, wipe cache, then in advanced wipe dalvik cache.
Now go to mount tools menu and mount usb storage, dose it show up on your pc. If not do not partition sd card and just install tue rom and post here
If it dose, back out of that menu n go back to advanced and partition the sd card. 2048mb app storage and 0mb swap
Now mount usb storage and drop this rom on there
http://db.tt/kTDDgLX2
Now flash that from the install xip from sd card.
Reboot
Waite 5 mins
Reboot again before you touch anything
Set up your first boot stuff
Reboot again
Any proboems try again
Still problems, wipe and restore backup
You wont need to root again
Then restore ur old sd card data
You also now have 2gb app storage
Use wifi teather, newest version fron play store, the yellow one [or google it]
Play with the settings. This is better then the one in the settings menu because it will do multiple devices and ps3 and such. Just set it up right [ google]