do you still have to format sd ext in cwm after installing?
I would suggest it.
I found a bit of a cheat, it's not 100% guaranteed to work, but I've had good luck with it so far.
Before installing and formatting, open a terminal (ADB shell, terminal app, your pick)
run "tar -cvf /sdcard/databackup.tar /data/*" (without quotes)
Wait for it to complete, it can look like it stalls at times, just give it time
copy the resulting tar file to your PC
install new kernel, format the sd-ext, format /data if desired (factory reset)
copy the tar file back to your sdcard if it got erased from the install or wipe
go back into a terminal and run "cd /" (again no quotes)
and then "tar -xvf /sdcard/databackup.tar" (once again, without quotes)
As a suggestion, afterwards, pull your USB cable out (if you had it plugged in) and pull your battery. Then put it back in and power up
This will avoid the system freaking out because files and apps were showing up unexpectedly and cause any settings that were replaced to reload without giving the running processes a chance to overwrite them.
I usually do this from within recovery and I mount the /data partition and sub partitions manually before and after since I know exactly what I'm dealing with before and after and being in CWM means I know for sure that Android isn't running and trying to use files I'm reading/writing through this cheat
This copies your entire /data structure as it appears to your system and puts it in a tarball.
This can run into issues if files are changing, either the changes wont show up in the tarball, or it will take forever waiting for the process to release the file so it can copy it into the tarball.
If you're running DT's A2SD, this might end up in an infinite loop when it finds the circular symlink in the data folder.
Once the new setup is up and running, it puts everything back relative to how it appeared to the system. So if a mount point is different, like changing from 1.3 to 1.4, the files end up in the right spots.
It has the nice side effect of putting all your icons back where they go