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The difference is that froyo is an older version of android (more specifically, a moto version of android 2.2) that liberty changed and then distributed. Gingerbread is the newer version with more/ better features (2.3).
I never flashed liberty GB but I remember reading somewhere that it does not download with the .zip extension at the end of the file. Try adding it and see if it appears for you to select then.
It is what you are supposed to install it over. Not sure what happened, did you wipe everything?
You could try booting into stock recovery and formatting data/cache there. Sometimes if you are lucky it can get you out of a pickle, not often though. Other then that you will need to SBF.