They do sell metal inside corners with paper tape applied over the metal. I found that sometimes they are not perfectly bent at a 90 degree angle and you get what happened to you. They are made to just be imbedded in the mud - screwing it won't work well at all. As others mentioned, the paper tape probably works best. I usually start with a coat of mud slightly thinned to avoid the dry spots. I've also heard of people using a spray bottle to wet the tape a little...
Also, the fiberglass tape tends to crack after awhile, particularily in corners. I know someone who ignored that advise and was really moaning years later when he had to retape all the cracks.