I have tried to update the kernel using your script, but I'm missing flash manipulation tools:
# ./UPDATE-SHEEVA-KERNEL.sh
missing /usr/sbin/flash_eraseall
missing /usr/sbin/flash_erase
#
I'm running an Angstrom distribution, and I can't find those tools in the repo

Also I'm trying to update from an old Guruplug running a 2.6.32.2 kernel from the internal flash. I have set mainline linux yes and arcNumber 2659. I think this is enough for the kernel to boot, right?