how are we supposed to use this when we are running stock 2.3.4?
as you do with every update that is not OTA
Download the update file and rename it to update.zip
Move the file to your phone's /sdcard directory
Reboot your phone and when it starts booting back up, hold Volume Up + Power
Select Recovery
The phone will reboot into recovery but first it'll show an exclamation point and a triangle. At this point, mash the Power and Volume Up buttons a few times until the recovery screen shows up OR if you have rooted your phone and have installed CWM you will see cwm's menu...choose update from sd card and then find the update.zip file
Select Apply sdcard update.zip
Reboot and enjoy (hopefully) Android 2.3.6