Thank you very much for your help yesterday, the phone is running great. For others who may read this, I learned a few things yesterday...
If you are getting the error...
E:Can't open /sdcard/update.zip (no such file to directory) Installation aborted)
It is most likely because you are using your phone as the SD card reader in Windows to partition the SD card. I would recommend a separate SD card adapter/reader (luckily my blackberry worked). We found that something was happening to the SD card somewhere between flashing it, checking the partitions and flashing the rom to the phone. We were eventually successful when we used an alternate device as the SD card reader, partitioned it using that device, then plugging it into my Samsung gravity Smart phone and going immediately to the recovery process. After doing some searching a few other people had the same issue. (I don't know if they figured it out)
Upon getting the ROM flashed and getting the phoen up and running, the EXT2 partition disappeared again.
I later found some forums stating that Froyo doesn't support partitioned SD cards.
This only effects the Link2SD application.
We should also get a list of safely removable apps and system files. I saw this on another forum for this device, but I'm not sure where it was. After isntalling the ROM, I did still find some unnecessary stuff in ehre that could definitely be trimmed out. i.e. Swype, com.logmein, gmail, facebook, etc. I don't know if this has been done in alter developments of the "AMS Mod", but by recommendation of BlindWolf, I just went with the original version.