Sorry about asking for something else to be added to your kernel but making it compatible with CM7 would help. It would need BOOTCLASSPATH changed, the netd fix for CM7, and a rmt_storage fix in the initramfs. Penguinrepair already has these fixes in his kernel but adding them to your kernel would help debug the rotation bug we have in CM7.
You can rip out the initramfs from penguinrepair's kernel and look at the changes. :fight:
Edit: BTW...the kernel is not the source of the touchscreen bug. CM7 for the TU does not have the touchscreen bug using a stock kernel and a modified initramfs. Something in the GB stock install is causing the TS bug...my guess is that CIQ is causing latency in the TS data stream.