Hi,
No worries on the help. Lots of folks have helped me get up to speed on this, and I'm happy to pay back my debts.
Take a quick read through on the ./readme that you'll execute. It's pretty short and fairly easy to follow. It's good to get an understanding of what it is that you are about to do...
I usually build my own kernels and flash them myself using the procedure I posted earlier. I write the uImage to NAND at a specific address. Then I modify the environment variables to match the uImage name and address location. Also, I change the rootfs to load from the MMC. So, I don't usually use the ./readme script or cbxbiker61's kernels, although I have done so on occasion and have figured out problems with my own home-brewed kernels as a result. So, I'm very thankful they are there.
If you read through cbxbiker61's ./readme script, you'll find that you need to either pass in --nandkernel or --rootkernel as options. If you pass no options, you'll get a usage error and the script will exit.
If you choose --nandkernel, he'll write the new uImage to NAND. If you choose --rootkernel, he'll right the uImage to the /boot directory which is in your rootfs (located on your SD card, in your case). He provides the environment variable required to be set to boot from NAND and pull the rootfs from NAND:
setenv bootargs rootfstype=jffs2 console=ttyS0,115200 mtdparts=orion_nand:0x400000@0x100000(uImage),0x1fb00000@0x500000(rootfs) rw root=/dev/mtdblock1 rw ip=192.168.1.9:192.168.1.4:192.168.1.4:255.255.255.0:DB88FXX81:eth0:none
You, however want to boot from NAND (or SD) and pull the rootfs from your SD card. If you want to boot your uImage from NAND and load your rootfs from your SD card (which is what you are doing now), doing the following should do the trick:
setenv bootargs 'console=ttyS0,115200 root=/dev/mmcblk0p1 rw rootfstype=ext2 rootdelay=10';
setenv bootargs '$(bootargs_console) $(mtdpartitions) $(bootargs_root); mmcinit; nand read.e 0x00800000 0x00100000 0x00400000; bootm 0x00800000'
boot
DISCLAIMER: The above is to the best of my knowledge. While I believe it will work, and I have thought about it a bit before sitting down to write it, I can not absolutely guarantee your success.

There might be others out there who could chime in to let you know if this all looks good, or whether I've made some egregious error....
No matter what, look at this as a gigantic learning opportunity!

Mike