All I did was unzip the new zImage and modules*.tar.gz to the desktop of my PC. I then renamed the zImage on the root of my SD card (so if i had a problem I could easily go back), then moved that and the modules*.tar.gz from my SD card to my desktop. I then moved the freshly unzipped zImage and modules*.tar.gz to the root of my SD card.
I was playing with Android all morning and I did have it not come out of sleep one time and had to pop the battery out. Ill keep playing with it and if i keep having the problem, id merge the modules*.tar.gz like animez did.
Hope this helps!
