Hi Shawn,
please use
--readFilesCommand zcat for gzipped files.
STAR spawns zcat processe(s) on your gzipped files and expects the unzipped output to go to stdout. Gunzip does not output to stdout, but creates a new (unzipped) files, so it will not work.
Note that STAR will not unzip into a temporary file, but rather use fifos for on-the-fly un-compression.
Instead of zcat you can use any other command script, provided that it can be run as
$ yourCommand inputFileFrom_readFilesIn > fastqFileForSTAR
Cheers
Alex