Sys 7 Bad Install?
I'm not sure why you removed the system and finder files from your system
folder and renamed it; I've never seen that bit of advice mentioned. You
should have simply run the installer without doing anything to your
existing system.
Here's what happened ——————-The Mac keeps track of where the
system and Finder are. It "knew" when you removed them from the system
folder. There's nothing sacred about the system folder; it's whatever
directory the system and finder files happen to be in. I assume you simply
dragged them _out_ of the system folder into what we call the "root"
directory. That didn't hurt anything, really, but from that moment on the
Mac considered your root directory to be the "system folder."
When you ran the Installer, it checked to see where the current system was,
decided that was the root directory, and put everything there.
Here's how to fix it ——————-Drag everything back into your
original system folder. Since the Mac keeps track of these things, this
folder will suddenly sport the little Mac icon that identifies it as the
system folder.