Interesting. I Finally decided to join the CM7 converts the other day for the first time & I managed to get everything working first go no problems.
After a full wipe I just flashed the CM7 (mine is RC1) & then flashed the latest GAPPS, I found link here Latest Version/Google Apps - CyanogenMod Wiki
I didn't need a settings.apk?
All working well. The only thing I found I wasn't happy with was the time it took to lock the GPS but after changing gps.conf to my local server it is now almost as quick as the Sense ROMS.
Very happy so far.