For those of you who care and have RHODs. Starfox on xda-dev has a kernel which supports notifications. The patch was coded by detule. The patch ensures that you have a blinking green when you have a notification and so on and so forth.
Kernel is here
http://forum.xda-developers.com/show....php?t=1207167
The notifications also require a library which needs to be mounted.
mount --bind /sdcard/lights.msm7k.so /system/lib/hw/lights.msm7k.so
The above line needs to be added into your froyo.user.conf file in the custom section to successfuly mount your lib. The lib path is in the OP of the topic linked above.