I am attempting to install this version of talk on the fascinatemtd version of CM7 2.3.5, nightly #6 (I also tried under a previous 2.3.4 version). I copy the files over manually with root explorer replacing them, correct the file permissions, I also reboot and clear cache and dalvik cache. After I replace the file and reboot any previous links to talk no longer work and there are no other versions showing up under a different name. Also of note there is no libtalk_jin.so file to overwrite after installing the rom.
Edit: I was never able to get this to work by copying the files manually but I was able to get it working on my version of cm7 by mounting system first in cwm before applying the file.