[Optimus One, P500 Original Android Development] morshab:
I flashed both ZIPs through recovery, then rebooted. checked sd-ext folder - files did not relocate. this is the recovery log:

Starting recovery on Mon Jun 25 21:16:13 2012
framebuffer: fd 4 (320 x 480)
ClockworkMod Recovery v5.0.2.7
recovery filesystem table
=========================
0 /tmp ramdisk (null) (null)
1 /boot mtd boot (null)
2 /cache yaffs2 cache (null)
3 /data yaffs2 userdata (null)
4 /misc mtd misc (null)
5 /recovery mtd recovery (null)
6 /sdcard vfat /dev/block/mmcblk0p1 /dev/block/mmcblk0
7 /system yaffs2 system (null)
8 /sd-ext ext4 /dev/block/mmcblk0p2 (null)

W:Unable to get recovery.fstab info for /datadata during fstab generation!
W:Unable to get recovery.fstab info for /emmc during fstab generation!
I:Completed outputting fstab.
I:Processing arguments.
I:Boot command: boot-recovery
E:Bad boot message
"recovery
"
mtd: successfully wrote block at c7e0400000000
I:Set boot command "boot-recovery"
I:Checking arguments.
I:device_recovery_start()
Command: "/sbin/recovery"

ro.secure=0
ro.allow.mock.location=1
ro.debuggable=1
persist.service.adb.enable=1
ro.build.id=GRI40
ro.build.display.id=GWK74
ro.build.version.incremental=eng.koush.20120112.110340
ro.build.version.sdk=10
ro.build.version.codename=REL
ro.build.version.release=2.3.7
ro.build.date=Thu Jan 12 11:03:57 PST 2012
ro.build.date.utc=0
ro.build.type=eng
ro.build.user=koush
ro.build.host=Koushik-Lion.local
ro.build.tags=test-keys
ro.product.model=LG-P500
ro.product.brand=lge
ro.product.name=cyanogen_p500
ro.product.device=p500
ro.product.board=p500
ro.product.cpu.abi=armeabi
ro.product.manufacturer=LGE
ro.product.locale.language=en
ro.product.locale.region=US
ro.wifi.channels=
ro.board.platform=msm7k
ro.build.product=p500
ro.build.description=thunderg-user 2.3.3 GRI40 LG-P500-V20h.19D34B612E release-keys
ro.build.fingerprint=lge/thunderg/thunderg:2.3.3/GRI40/LG-P500-V20h.19D34B612E:user/release-keys
rild.libpath=/system/lib/libril-qc-1.so
rild.libargs=-d /dev/smd0
persist.rild.nitz_plmn=
persist.rild.nitz_long_ons_0=
persist.rild.nitz_long_ons_1=
persist.rild.nitz_long_ons_2=
persist.rild.nitz_long_ons_3=
persist.rild.nitz_short_ons_0=
persist.rild.nitz_short_ons_1=
persist.rild.nitz_short_ons_2=
persist.rild.nitz_short_ons_3=
ril.subscription.types=NV,RUIM
ro.telephony.ril_class=lgeqcom
dalvik.vm.heapsize=24m
ro.product.camera=thunderg
ro.bt.bdaddr_path=/data/misc/bd_addr
keyguard.no_require_sim=true
ro.ril.hsxpa=1
ro.ril.gprsclass=10
ro.config.notification_sound=OnTheHunt.ogg
ro.config.alarm_alert=Alarm_Classic.ogg
ro.rommanager.developerid=cyanogenmod
ro.url.legal=http://www.google.com/intl/%s/mobile/android/basic/phone-legal.html
ro.url.legal.android_privacy=http://www.google.com/intl/%s/mobile/android/basic/privacy.html
ro.com.google.clientidbase=android-google
ro.com.android.wifi-watchlist=GoogleGuest
ro.setupwizard.enterprise_mode=1
ro.com.android.dateformat=MM-dd-yyyy
ro.com.android.dataroaming=false
ro.config.ringtone=Playa.ogg
ro.modversion=CyanogenMod-7.2.0-RC0-OptimusOne-KANG
ro.kernel.android.checkjni=1
ro.setupwizard.mode=OPTIONAL
net.bt.name=Android
net.change=net.bt.name
dalvik.vm.stack-trace-file=/data/anr/traces.txt
ro.factorytest=0
ro.serialno=
ro.bootmode=unknown
ro.baseband=unknown
ro.carrier=unknown
ro.bootloader=unknown
ro.hardware=thunderg
ro.revision=0
ro.emmc=0
init.svc.recovery=running
init.svc.adbd=running

I:Checking for extendedcommand...
I:Skipping execution of extendedcommand, file not found...
mtd: successfully wrote block at c7e0400000000
I:Set boot command ""

-- Installing: /sdcard/1SHARON/cm scripts for SD Partition/sd-ext_patch-signed-v11.zip
mtd: successfully wrote block at c7e0400000000
I:Set boot command "boot-recovery"
Finding update package...
I:Update location: /sdcard/1SHARON/cm scripts for SD Partition/sd-ext_patch-signed-v11.zip
Opening update package...
Installing update...
sd-ext patch v1.1 by DavisNTabout to run program [/sbin/busybox] with 3 args

about to run program [/sbin/busybox] with 3 args
/system/etc/init.d/05mountsd
minzip: Extracted file "/system/etc/init.d/05mountsd"
about to run program [/sbin/busybox] with 3 args
For LG P500 (and other) CM7/CM9/system/bin/e2fsck
about to run program [/sbin/busybox] with 3 args

script result was [Done!]
Mounting system...
Updating 05mountsd...
Unmounting system...
Done!

Install from sdcard complete.

-- Installing: /sdcard/1SHARON/cm scripts for SD Partition/to_sd-ext_patch-signed-v10.zip
mtd: successfully wrote block at c7e0400000000
I:Set boot command "boot-recovery"
Finding update package...
I:Update location: /sdcard/1SHARON/cm scripts for SD Partition/to_sd-ext_patch-signed-v10.zip
Opening update package...
Installing update...
about to run program [/sbin/busybox] with 3 args
Move to sd-ext patch v1.0 by DavisNT
The following items will be moved to /sd-ext and linked:
* /data/app
* /data/app-private
* /data/dalvik-cache
Mounting data...
about to run program [/sbin/busybox] with 3 args
Mounting sd-ext...mount: mounting /dev/block/mmcblk0p2 on /sd-ext failed: No such device
run_program: child exited with status 255
script aborted: assert failed: is_mounted("/data") == "/data" && is_mounted("/sd-ext") == "/sd-ext"

Verifying mounts...
assert failed: is_mounted("/data") == "/data" && is_mounted("/sd-ext") == "/sd-ext"
E:Error in /sdcard/1SHARON/cm scripts for SD Partition/to_sd-ext_patch-signed-v10.zip
(Status 7)
Installation aborted.
mtd: successfully wrote block at c7e0400000000
I:Set boot command ""

this is the terminal output:

$ export PATH=/data/local/bin:$PATH
$ su
# ls -la /data
drwxrwx--x 1 system system 2048 Jun 17 07:45 .
drwxr-xr-x 15 root root 0 Jun 26 00:18 ..
drwxrwxrwx 1 root root 2048 Jun 11 22:07 amit
drwxrwxr-x 1 system system 2048 Jun 25 15:04 anr
drwxrwx--x 1 system system 2048 Jun 26 00:14 app
drwxrwx--x 1 system system 2048 Jun 13 10:49 app-private
drwx------ 1 system system 2048 Jun 26 00:19 backup
drwxrwx--x 1 system system 2048 Jun 26 00:14 dalvik-cache
drwxrwx--x 1 system system 2048 Jun 26 00:14 data
drwxr-x--- 1 root log 2048 Jun 11 22:07 dontpanic
drwxr-x--x 1 root root 2048 Jun 11 22:07 local
drwxrwx--- 1 root root 2048 Jun 11 22:07 lost+found
drwxrwx--t 1 system misc 2048 Jun 13 09:34 misc
drwx------ 1 root root 2048 Jun 26 00:19 property
drwxrwx--- 1 radio radio 2048 Jun 26 00:19 radio
drwx------ 1 system system 2048 Jun 11 22:07 secure
drwxrwxr-x 1 system system 2048 Jun 26 00:20 system
drwxr-xr-x 1 system system 2048 Jun 18 07:36 tombstones
# ls -la /sd-ext
drwxrwx--x 3 system system 1024 Jun 11 22:54 .
drwxr-xr-x 15 root root 0 Jun 26 00:18 ..
drwxr-xr-x 2 root root 12288 Jun 11 22:54 lost+found
# mount
rootfs on / type rootfs (ro,relatime)
tmpfs on /dev type tmpfs (rw,relatime,mode=755)
devpts on /dev/pts type devpts (rw,relatime,mode=600)
proc on /proc type proc (rw,relatime)
sysfs on /sys type sysfs (rw,relatime)
tmpfs on /mnt/asec type tmpfs (rw,relatime,mode=755,gid=1000)
tmpfs on /mnt/obb type tmpfs (rw,relatime,mode=755,gid=1000)
/dev/block/mtdblock1 on /system type yaffs2 (ro,relatime)
/dev/block/mtdblock9 on /data type yaffs2 (rw,nosuid,nodev,relatime)
/dev/block/mtdblock8 on /cache type yaffs2 (rw,nosuid,nodev,relatime)
/dev/block/mmcblk0p2 on /sd-ext type ext3 (rw,noatime,nodiratime,errors=continue,barrier=1,data=writeback)
/dev/block/mtdblock9 on /cache/download type yaffs2 (rw,nosuid,nodev,relatime)
/dev/block/vold/179:1 on /mnt/sdcard type vfat (rw,dirsync,nosuid,nodev,noexec,relatime,uid=1000,gid=1015,fmask=0602,dmask=0602,allow_utime=0020,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
/dev/block/vold/179:1 on /mnt/secure/asec type vfat (rw,dirsync,nosuid,nodev,noexec,relatime,uid=1000,gid=1015,fmask=0602,dmask=0602,allow_utime=0020,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
tmpfs on /mnt/sdcard/.android_secure type tmpfs (ro,relatime,size=0k,mode=000)
/dev/block/dm-0 on /mnt/asec/com.goldtouch.ynet-1 type vfat (ro,dirsync,nosuid,nodev,relatime,uid=1000,fmask=0222,dmask=0222,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
/dev/block/dm-1 on /mnt/asec/com.adobe.reader-1 type vfat (ro,dirsync,nosuid,nodev,relatime,uid=1000,fmask=0222,dmask=0222,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
/dev/block/dm-2 on /mnt/asec/com.games2win.parkingfrenzy-1 type vfat (ro,dirsync,nosuid,nodev,relatime,uid=1000,fmask=0222,dmask=0222,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
/dev/block/dm-3 on /mnt/asec/net.lucky.star.mrtm-1 type vfat (ro,dirsync,nosuid,nodev,relatime,uid=1000,fmask=0222,dmask=0222,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
/dev/block/dm-4 on /mnt/asec/mominis.Generic_Android.Ninja_Chicken_Ooga_Booga-1 type vfat (ro,dirsync,nosuid,nodev,relatime,uid=1000,fmask=0222,dmask=0222,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
/dev/block/dm-5 on /mnt/asec/com.celticspear.matches-1 type vfat (ro,dirsync,nosuid,nodev,relatime,uid=1000,fmask=0222,dmask=0222,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
/dev/block/dm-6 on /mnt/asec/ymst.android.fxcamera-1 type vfat (ro,dirsync,nosuid,nodev,relatime,uid=1000,fmask=0222,dmask=0222,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
/dev/block/dm-7 on /mnt/asec/com.keramidas.TitaniumBackup-2 type vfat (ro,dirsync,nosuid,nodev,relatime,uid=1000,fmask=0222,dmask=0222,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
/dev/block/dm-8 on /mnt/asec/com.beno.Words-1 type vfat (ro,dirsync,nosuid,nodev,relatime,uid=1000,fmask=0222,dmask=0222,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
/dev/block/dm-9 on /mnt/asec/com.speedsoftware.rootexplorer-1 type vfat (ro,dirsync,nosuid,nodev,relatime,uid=1000,fmask=0222,dmask=0222,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
/dev/block/dm-10 on /mnt/asec/com.a0soft.gphone.app2sd-1 type vfat (ro,dirsync,nosuid,nodev,relatime,uid=1000,fmask=0222,dmask=0222,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
/dev/block/dm-11 on /mnt/asec/com.tobiapps.android_100fl-1 type vfat (ro,dirsync,nosuid,nodev,relatime,uid=1000,fmask=0222,dmask=0222,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
/dev/block/dm-12 on /mnt/asec/com.facebook.katana-1 type vfat (ro,dirsync,nosuid,nodev,relatime,uid=1000,fmask=0222,dmask=0222,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
/dev/block/dm-13 on /mnt/asec/com.wHotmaillink-1 type vfat (ro,dirsync,nosuid,nodev,relatime,uid=1000,fmask=0222,dmask=0222,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
/dev/block/dm-14 on /mnt/asec/com.ideomobile.discount-1 type vfat (ro,dirsync,nosuid,nodev,relatime,uid=1000,fmask=0222,dmask=0222,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
/dev/block/dm-15 on /mnt/asec/com.devuni.flashlight-1 type vfat (ro,dirsync,nosuid,nodev,relatime,uid=1000,fmask=0222,dmask=0222,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
/dev/block/dm-16 on /mnt/asec/com.google.android.youtube-1 type vfat (ro,dirsync,nosuid,nodev,relatime,uid=1000,fmask=0222,dmask=0222,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
/dev/block/dm-17 on /mnt/asec/com.waze-1 type vfat (ro,dirsync,nosuid,nodev,relatime,uid=1000,fmask=0222,dmask=0222,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
/dev/block/dm-18 on /mnt/asec/com.zeptolab.ctr.lite.google-1 type vfat (ro,dirsync,nosuid,nodev,relatime,uid=1000,fmask=0222,dmask=0222,codepage=cp437,iocharset=iso8859-1,shortname=mixed,utf8,errors=remount-ro)
#