Problem resolved today, completely.
I am loving it. Never knew or imagined I myself will find this solution. (Never thought it would be so easy.)
Enjoy your CM 7 even more and to the fullest. Its one of my happiest days in life.
Solution 1 ( Enjoy DSP Manager & Equalizer app even more.)
Download the attached zip and extract contents.
Go to extracted contents via root explorer.
Rename libbundlewrapper.so as libcyanogen-dsp.so
Copy new libcyanogen-dsp.so
Go to system/lib/soundfx folder change r/w permissions.
Delete old libcyanogen-dsp.so and paste new libcyanogen-dsp.so (70 KB)
Change file permissions as follows:
Change r/w permission.
Enjoy DSP Manager even more.
You can use equalizer app from market also with this mod.
Solution 2. (Using only Equalizer app from market)
After installing rom :
1. Delete cyanogen-dsp.so file from system/lib/soundfx folder
2. Paste libbundlewrapper.so and change permissions.
Now, soundfx folder should look like this:
Freeze the dsp app via titanium.
Use and enjoy equalizer app now.
Solution 3. (Keeping both Equalizer app and DSP Manager)
Just delete libcyanogen-dsp.so. Paste libbundlewrapper.so.
Then rename libbundlewrapper.so as libcyanogen-dsp.so. Paste libbundlewrapper.so again. It should look like this now.
This way both equalizer app from market and dsp manager both will work.
Everybody make sure that if they are changing any file I.e. so files, kindly change and confirm permission as follows:
Thanks to Ciaox for flashable zips.
Flashable zip Solution 1
Flashable zip Solution 3