:/ I got my Customize to work:
1) Jailbreak your phone.
2) At this point you have two options. A) You can ssh into your iphone and open the /System/Library/CoreServices/SystemVersi on.plist and change the version part of it from 1.1.4 to 1.1.3 . Or you can B) install the 1.1.4 to 1.1.3 change versions download. This will do the exact thing as ssh'ing into it. At the current moment I forgot were this source is, however I DO KNOW it exist. Will update with link in a few hours.
3) Download the "Orginal" customize. DONT RUN IT.. Once installed, exit installer and go back to installer after sliding slider ect.
4) Unistall customize "Orginal"(DO NOT RUN IT). All were trying to do it create the folder.
5) Then download customize 1.1.3 edited/modded using this source repository (up to date as of 03/09/08), type
http://ipodtouched.net/repo.xml (Took along while to find) .
6)After it installs restart the iphone, and click it. It will load, make sure to keep tapping the screen while it shows "Spicy Chicken".