No Errors now!
Allrighty folks. Download the zip from the page below. Turn off Verification in Custom Recovery.
Then Backup and flash. It all works. Long presses, short presses, everything. I really like it too....great improvement, might pull me away from Swype!
Guide: Install Android 2.3 Keyboard - BriefMobile
Also, after flashing and rebooting, you have to long press in a text entry window and select "Android Keyboard". (for any newer users

). Finally, you might want to backup LatinIME.apk in the /system/app/ folder before you do this...
(also, that link says haptic feedback, (vibrate on keypress), doesn't work, but it works on my phone if I turn it on in the settings page, (hit the little gear to the left of the spacebar, hit options, turn on vibrate).)