I'm running a fully updated N900 on Titan/Lehto's maemo22 over-clocked kernel with ~40megs in rootfs (awesome work you two, BTW!).
I know I'll have to disable some repos to clear more rootfs in order to install PR1.2, but will I also have to flash back to stock kernel before the PR1.2 install as well?
I'm not an expert, or even a knowledgeable in this particular area, so this is just a guess.
If PR1.2 includes new kernel stuff, the update probably flashes over whatever kernel is installed. Then it wouldn't matter what you've done previously with the kernel.
But if PR1.2 doesn't include a new kernel, ie if it uses the PR1.1.1, I doubt the update would flash a new kernel in conjunction with the update process. This can lead to issues if PR1.2 isn't compatible with any changes a modified kernel, like Lehto's or Titan's overclocked ones, has.
The safest thing to do is flash the original kernel back before updating. Just in case.