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Okay...a kernel is typically referred to for overclocking purposes. So if you don't want to overclock your CPU, you don't need a new kernel. If you are going to install a new kernel, make sure to get the one for whatever ROM you are running. If you are running the B&N version of android, then make sure to use the oc kernel for android 2.1...if want to install a new ROM (phiremod, nookie froyo, CM7, etc) then you would want the oc kernel for froyo/cm7
Phiremod is a custom ROM. I am running v2BETA...I overwrote the B&N version of android and installed a new OS. It means there is no more quicknav button (that little arrow button above the n hardkey) As far as I am concerned, it is the most stable custom ROM at this time.
It would certainly be easier to just do the restore from Titanium...