I think I was having the same issue at first.
I was trying to unzip the package to /media/mmc1/cdc.
Didn't work.

Try moving it to /cdc and then try the validate tests.
cd /cdc
./bin/cvm -cp testclasses.zip HelloWorld
./bin/cvm -cp testclasses.zip Test

Now, that being said, where is a good place to get .jar files that will run under this thing? Any hope of getting a MIDP emulator to play nice?