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Good news, I'm going out later tonight to buy an SD card. I'll come back to tell you guys how installation goes.

I should've backed my contacts up, though... :\Alright, I went out and got an 8 GB micro SD card. I put the card in the phone, put the .zip on the card, and booted up CWM. It finally mounted the /sdcard, and I loaded up the .zip from the card. It started to install, then I got an "Installation aborted (status 7)". I decided to reboot the phone to put a new copy of the .zip on the card, and to my surprise, a loading screen came up saying "CyanogenMod 7.2". So it works!!I should've backed my contacts up, though... :\
Thanks so much for your guys' help! I feel like a total dummy, trying to use the internal storage.
EDIT: I have one last question. How do I use custom themes? I went into Theme Chooser and it only had the default System theme.
Alright. I was looking on the "Post your home screen" thread and I saw you had a theme that looked like Jelly Bean. What is that called?
When I try to use ICS, it says "This theme was improperly compiles and cannot be applied."
Still gives me that error. Oh well, I guess.
The Jellybean theme works great, I like it a lot!
One thing I noticed about this mod is that it doesn't show the carrier in the top left of the statusbar. Can I fix that somehow?

And status bar you can edit in setting cyanogenmod settings interface and then staus bar
):Yeah, I couldn't put the carrier name there either. That's okay though.
As for themes, this is where I found the one I'm using at the moment, there's loads to choose from, and you'll just need to download and adb install (or do it the long way by putting it on your card,):
http://forum.xda-developers.com/showthread.php?t=1167075
Thank you all so very much for your work. CM7 runs smoothly, it's just great. Had an issue mounting the Phone to my PC (ubuntu 12.04)and couldn't access my SD card.
After some searching I found that unchecking USB debugging and then fixing permissions on recovery allowed me to mount my SD card upon reboot. Hope this helps someone.
Great news have CM 7.2 install able. The main question is everything work on with CM 7.2?