The vacancy did not "within thirty days next preceding such election", so that part of the statue does not apply. But the first sentence sure would (if this law could ever be interpreted to cancel/overturn an election...which it cannot).
The governor of this state may make a temporary appointment of a senator of the United States from this state whenever a vacancy shall occur by reason of any cause other than the expiration of the term;The Torch ran lost, resigned.... Another was duly elected to take over as the NJ Senator in the 108th beginning Jan. 3, 2003. Seems the above says the Gov can't appoint beyond the expiration of the term which the 107th and Torch's current term expire on Jan. 3, 2003.