Thanks for this Dan! I'd read through all of the previous guides, but held off since they were all written with smaller SD card sizes in mind that I hadn't done the math to calculate for a 16 GB SDHC. Following your modified instructions and updates (Red pill worked great for getting a couple things to install), and Milhouse/PenguinBait's links to a few things in other threads, I installed perfectly on the first try. I re-did the partitioning/formatting steps a couple of times before feeling confident enough to run Fanoush's initfs_flash because I thought the umount errors were a little odd and I was doing something wrong. Eventually it looked clean though.

Cheers! I'm now up and running with a 3 GB boot partition and 11.9 GB "Internal memory card". Now to wait for a 32 GB card to drop in price (or fine... another 16 GB SDHC). Only complaint is that I can't mount the internal SD card over USB (because the OS is running on it) unless I reboot to internal flash, but since writing big files over USB feels way too slow, I'm likely to pull the card out and stick it in a reader until I get a big second card.