Interesting. I've has that modification dmg for a while but never bothered to use it until after 10.7.3 was officially released (been using the beta's for a few months as an ADC member). Looks great. What do you think caused the issue? Did you have the skin active when you applied the .3 update which caused the distortion?
Another tweak I did was to photoshop the brown leather png's to a black leather. It actually looked great, only issue was with the fonts, I couldn't figure out how to change them to a white.
(P.S. how do you make an image smaller and clickable to open in another window?)