MD5 is a "fingerprint" so to speak that is used to check the integrity of files. For example, when you download a file from the internet to your computer you can use an MD5 checksum to confirm every last piece of that file was correctly downloaded.
If there's an MD5 mismatch, that means that the fingerprint Clockwork is expecting is different from the fingerprint on the file, and it aborts the restore process. That's why I postulated that it was a bad backup - because if there was an error while backing up, that would change the fingerprint of that backup file.