I provided this at first for source code, to allow people to add it in their ROM.
Sadly, almosts all roms have uncompatible updater-script, which make it impossible to use without modifying some stuff -> some knowledge is needed.
In short : with sd kernel you have obviously to partition your sd manually (or with Tigrouzen Scripts). You don't have to touch to nand (except v1.2 and older, where, IF YOU WANT, you can have access to internal memory.
With nand kernel you have to have your nand formated ext/Fat/ext on some kernel or ext/ext/ext on thoses without internal SD support.
You can partition either manually, either by flashing bada, or by doing "format cache, format data" from recovery. (this will not work on kernel with internal sd support if 2nd partition of nand is not fat)
For information, flashing bada format to Fat/Fat/Fat, which is good and you just have to format /data and /cache from recovery.
Last i have to say, i don't remember which partition goes where, so maybe script by Tigrouzen to format Nand may not work (because trying to put system on a 20MB partition is not a good thing).
Please read this post and OP several time before asking another question, i think everything you have to know is in one of those