Keep trying nishtya. I think I'm in the same boat as Cuddles here...I got it working, but I'm not entirely sure how. I had the same problems you had at first, but eventually got it working. I don't know what to tell you though...have you tried first installing i2c through the source, but then installing lm_sensors through apt-get? You shouldn't have to recompile your kernel to get it going...I didn't read the thread too closely, so perhaps that was for something else. Anyways..you'll get it.