I think that's a KitKat Google apps package. CM7.2 is Gingerbread. You can find a version that will work here:
http://goo.im/gapps. Just choose the one for CM7. But given that your system partition seems full it may not work anyway - if so you'll have to reinstall the ROM first.
The system partition of the phone is 250 MB unless you are using a custom mtd or hboot. I don't know why Windows would report larger, but remember it isn't seeing the system partition but the result of a copy using Total Commander. If you were using a Sense 3 ROM it might be that part of /system was linked on SD, but CM7 doesn't do that.
There will always be a data partition on the phone. These scripts, whether the more normal apps2sd or data2sd, work by creating directories on the card and linking to them on the phone so that it uses the space on the card without realising it. Depending on how the directory lookup or copy is done it can look like one is empty or both contain the same stuff.
If you want to start from scratch, you wipe the phone (from recovery that should wipe both) and reinstall the ROM.
I've only used apps2sd solutions with CM, not data2sd, so can't comment in detail on that. The difference is just moving apps and dalvik cache rather than all data. Data2sd seemed unnecessary to me (I could get enough space by other means), and more likely to slow the phone, and placed a greater load on the least reliable component (the SD card), so never appealed to me.