I've spent the past couple days cleaning up the sources and getting this better integrated into the Android system as a whole. I added the PIN lock as an option in the system's Settings, and also added back the original "drag" lock for users who prefer it:
Also, disabling the "Use visible pattern" option works now.
In other words, the source should be ready for integration into other projects/ROMs, even though it still uses CM as a base.
Code is available here (I'll also update the first post):