[G2 and Desire Z General] khaosxiii:
Sorry I didn't fully test LEM - there are some .ko files too - I'll push those as well and see ...

After logging it it looks like i'm seeing the same thing and it's certainty erroring out ...

E/KINETO (22045): KLOG0C3- xmk_QueryOSQueue SDL Queue empty : WAIT_FOREVER
E/KINETO (22045): KLOG0A3- ibs_os_GetMsg: Timeout forever for UKCC qHnd 0x80c3503c
D/KIPCapp (22045): KIPC_SendMessage: len = 1, socket = 0
D/KIPCapp (22045): Connecting... socket = 47, state = 0
D/KIPCapp (22045): Address is 127.0.0.1, Port is 45211
E/KIPCapp (22045): Connect failed 111
E/KINETO (22045): KLOG103- ganswitch_init - error sending message!
D/PowerManagerService( 1435): New lightsensor value:40, lcdValue:160
D/PowerManagerService( 1435): lightSensorChangedLocked, buttonValue >= 0, mPowerState = 3
V/AlarmManager( 1435): Alarm triggering: Alarm{45200958 type 0 com.android.kineto}
V/AlarmManager( 1435): Adding Alarm{45200958 type 0 com.android.kineto} Nov 05 11:31:25 pm
D/KIPCapp (22045): KIPC_SendMessage: len = 1, socket = 0
D/KIPCapp (22045): Connecting... socket = 47, state = 0
D/KIPCapp (22045): Address is 127.0.0.1, Port is 45211
E/KIPCapp (22045): Connect failed 111
E/KINETO (22045): KLOG103- ganswitch_init - error sending message!
I/Kineto::Receiver(22045): onReceive Enter
I/Kineto::main(22045): Kineto: SendAlarmEvent Enter
E/KINETO (22045): KLOG0A2- ERROR: IBS Msg Q Post: size is too large
E/KINETO (22045): KLOG0A2- ERROR: Failed to post to Queue
I/Kineto::Receiver(22045): onReceive Exit
D/dalvikvm( 1435): GC_EXTERNAL_ALLOC freed 7953 objects / 398960 bytes in 75ms
D/StatusBar( 1435): DISABLE_EXPAND: yes
D/KIPCapp (22045): KIPC_SendMessage: len = 1, socket = 0
D/KIPCapp (22045): Connecting... socket = 47, state = 0
D/KIPCapp (22045): Address is 127.0.0.1, Port is 45211
E/KIPCapp (22045): Connect failed 111
E/KINETO (22045): KLOG103- ganswitch_init - error sending message!
D/NetworkSwitchAppWidgetProvider(21809): updateWidgets
D/NetworkSwitchAppWidgetProvider(21809): getRemoteViews->
D/NetworkSwitchAppWidgetProvider(21809): networkType: -1, signalType: EXACT
D/NetworkSwitchAppWidgetProvider(21809): settingsNetworkMode: 0
D/NetworkSwitchAppWidgetProvider(21809): signalStrength: gsm=17
D/NetworkSwitchAppWidgetProvider(21809): <-getRemoteViews
I/ActivityManager( 1435): Starting activity: Intent { act=android.intent.action.MAIN cat=[android.intent.category.LAUNCHER] flg=0x10500000 cmp=jackpal.androidterm/.Term bnds=[245,586][355,716] }
I/Kineto::main(22045): Kineto: onPause Enter
I/Kineto::main(22045): Kineto: onPause Called alertdialog is null
I/Kineto::main(22045): Kineto: onPause Called usrForcedExit: false
I/Kineto::main(22045): Kineto: onPause Exit
D/dalvikvm(22081): GC_FOR_MALLOC freed 121 objects / 485744 bytes in 30ms
D/dalvikvm(22081): GC_FOR_MALLOC freed 34 objects / 298696 bytes in 29ms
D/dalvikvm(22081): GC_FOR_MALLOC freed 8 objects / 267984 bytes in 28ms
I/dalvikvm-heap(22081): Grow heap (frag case) to 5.195MB for 1200016-byte allocation
D/dalvikvm(22081): GC_FOR_MALLOC freed 1 objects / 1200024 bytes in 37ms
D/KIPCapp (22045): KIPC_SendMessage: len = 1, socket = 0
D/KIPCapp (22045): Connecting... socket = 47, state = 0
D/KIPCapp (22045): Address is 127.0.0.1, Port is 45211
E/KIPCapp (22045): Connect failed 111
E/KINETO (22045): KLOG103- ganswitch_init - error sending message!
D/PowerManagerService( 1435): New lightsensor value:10, lcdValue:160
D/PowerManagerService( 1435): lightSensorChangedLocked, buttonValue >= 0, mPowerState = 3
I/Kineto::main(22045): Kineto: onStop Enter
I/Kineto::main(22045): Kineto: onStop Exit
D/dalvikvm(22081): GC_FOR_MALLOC freed 65 objects / 483240 bytes in 21ms
D/dalvikvm(22081): GC_FOR_MALLOC freed 6 objects / 297648 bytes in 21ms
D/dalvikvm(22081): GC_FOR_MALLOC freed 4 objects / 267848 bytes in 21ms
I/dalvikvm-heap(22081): Grow heap (frag case) to 5.194MB for 1200016-byte allocation
D/dalvikvm(22081): GC_FOR_MALLOC freed 1 objects / 1200024 bytes in 30ms
D/PowerManagerService( 1435): New lightsensor value:160, lcdValue:160
D/PowerManagerService( 1435): lightSensorChangedLocked, buttonValue >= 0, mPowerState = 3
D/KIPCapp (22045): KIPC_SendMessage: len = 1, socket = 0
D/KIPCapp (22045): Connecting... socket = 47, state = 0
D/KIPCapp (22045): Address is 127.0.0.1, Port is 45211
E/KIPCapp (22045): Connect failed 111
E/KINETO (22045): KLOG103- ganswitch_init - error sending message!
D/PowerManagerService( 1435): New lightsensor value:160, lcdValue:160
D/PowerManagerService( 1435): lightSensorChangedLocked, buttonValue >= 0, mPowerState = 3
D/lights ( 1435): set_light_keyboard brightness=16777215
D/AK8975 ( 1362): sliding keypad status changed: 0 (0: open, 1: close)
I/WindowManager( 1435): Setting rotation to 1, animFlags=1
I/ActivityManager( 1435): Config changed: { scale=1.0 imsi=310/260 loc=en_US touch=3 keys=2/1/1 nav=3/1 orien=2 layout=34 uiMode=17 seq=397}
D/dalvikvm(22081): GC_FOR_MALLOC freed 49 objects / 482712 bytes in 65ms
D/dalvikvm(22081): GC_FOR_MALLOC freed 4 objects / 297592 bytes in 51ms
D/dalvikvm( 1435): GC_EXTERNAL_ALLOC freed 2420 objects / 126088 bytes in 108ms
D/dalvikvm(22081): GC_FOR_MALLOC freed 4 objects / 267848 bytes in 50ms
I/dalvikvm-heap(22081): Grow heap (frag case) to 5.958MB for 2000016-byte allocation
D/dalvikvm(22081): GC_FOR_MALLOC freed 1 objects / 1200024 bytes in 55ms
D/KIPCapp (22045): KIPC_SendMessage: len = 1, socket = 0
D/KIPCapp (22045): Connecting... socket = 47, state = 0
D/KIPCapp (22045): Address is 127.0.0.1, Port is 45211
E/KIPCapp (22045): Connect failed 111
E/KINETO (22045): KLOG103- ganswitch_init - error sending message!
D/NetworkSwitchAppWidgetProvider(21809): updateWidgets
D/NetworkSwitchAppWidgetProvider(21809): getRemoteViews->
D/NetworkSwitchAppWidgetProvider(21809): networkType: -1, signalType: EXACT
D/NetworkSwitchAppWidgetProvider(21809): settingsNetworkMode: 0
D/NetworkSwitchAppWidgetProvider(21809): signalStrength: gsm=16
D/NetworkSwitchAppWidgetProvider(21809): <-getRemoteViews
D/PowerManagerService( 1435): New lightsensor value:40, lcdValue:160
D/PowerManagerService( 1435): lightSensorChangedLocked, buttonValue >= 0, mPowerState = 3
V/AlarmManager( 1435): Alarm triggering: Alarm{45200958 type 0 com.android.kineto}
I/Kineto::Receiver(22045): onReceive Enter
I/Kineto::main(22045): Kineto: SendAlarmEvent Enter
E/KINETO (22045): KLOG0A2- ERROR: IBS Msg Q Post: size is too large
E/KINETO (22045): KLOG0A2- ERROR: Failed to post to Queue
I/Kineto::Receiver(22045): onReceive Exit
V/AlarmManager( 1435): Adding Alarm{45200958 type 0 com.android.kineto} Nov 05 11:31:30 pm
D/KIPCapp (22045): KIPC_SendMessage: len = 1, socket = 0
D/KIPCapp (22045): Connecting... socket = 47, state = 0
D/KIPCapp (22045): Address is 127.0.0.1, Port is 45211
E/KIPCapp (22045): Connect failed 111
E/KINETO (22045): KLOG103- ganswitch_init - error sending message!
D/dalvikvm( 1435): GC_EXPLICIT freed 1793 objects / 80672 bytes in 69ms
D/PowerManagerService( 1435): New lightsensor value:90, lcdValue:160
D/PowerManagerService( 1435): lightSensorChangedLocked, buttonValue >= 0, mPowerState = 3
D/KIPCapp (22045): KIPC_SendMessage: len = 1, socket = 0
D/KIPCapp (22045): Connecting... socket = 47, state = 0
D/KIPCapp (22045): Address is 127.0.0.1, Port is 45211
E/KIPCapp (22045): Connect failed 111
E/KINETO (22045): KLOG103- ganswitch_init - error sending message!
D/KIPCapp (22045): KIPC_SendMessage: len = 1, socket = 0
D/KIPCapp (22045): Connecting... socket = 47, state = 0
D/KIPCapp (22045): Address is 127.0.0.1, Port is 45211
E/KIPCapp (22045): Connect failed 111
E/KINETO (22045): KLOG103- ganswitch_init - error sending message!
D/NetworkSwitchAppWidgetProvider(21809): updateWidgets
D/NetworkSwitchAppWidgetProvider(21809): getRemoteViews->
D/NetworkSwitchAppWidgetProvider(21809): networkType: -1, signalType: EXACT
D/NetworkSwitchAppWidgetProvider(21809): settingsNetworkMode: 0
D/NetworkSwitchAppWidgetProvider(21809): signalStrength: gsm=15
D/NetworkSwitchAppWidgetProvider(21809): <-getRemoteViews

EDIT:

cp'd libkineto.so to /system/lib and kineto_gan.ko to /system/lib/modules and still experiencing same issue ...

so ... yeah ... :P