I would suggest returning to full stock, including recovery, and then making your way back to a custom ROM and kernel. I did this recently and my phone is running better than new.
Start with the latest stock ROM, rooted, from here: http://forum.xda-developers.com/show....php?t=2485319
Once you are up and running on it, go to this post of mine from the other day and follow it in order: http://forum.xda-developers.com/show...28&postcount=5
Okay, So I was able to get my phone re-unlocked with the help of cmlusco.
I decided as one last effort I would try following what you said exactly with the 3.11 stock ROM (it previously worked for me with the 2.10 ROM, but didn't fix the problem I was having).
Only problem now, is that after flashing the ROM, my phone just won't boot. It just hangs at the white splash screen w/ green htc.