This is a rewrite/repost, condensed and updated with information that I think is useful to a lot of rooted users. Partitions and kernels aren't frequently discussed. Most of us know that they exist but don't really know how they work. Hopefully it all becomes clear after reading this

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<moderator snipped bulk of first/original post for brevity>
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For a more in-depth read into how partitions work in Android/Linux, take a look here, courtesy of Akazabam:
http://androidforums.com/evo-4g-all...ore-information-about-android-partitions.html