Just finished this, after installing the new ( Nov 2 ) kernel.

One change:

insmod /mnt/initfs/lib/modules/2.6.16-omap1/ext2.ko

becomes:

insmod /mnt/initfs/lib/modules/2.6.16.27-omap1/ext2.ko

It also took two reboots.

But it all works for me now.

BTW, your new swap partition will not show up in the Control Panel->Memory applet. To check it cat/proc/swaps.