Everyone on this thread, what John G is seeing is correct. The 08 kernel will get installed on an update but the associated kmods do not. That is because in 7.1 there is a bug in yum which doesn't exclude kernels from being updated. It is fixed in 7.1.1, which hopefully will be released soon, and the 08kmods will be included.
If you are in a hurry for this, look at the tracking bug for 7.1.1 -
http://bugs.contribs.org/show_bug.cgi?id=2342, so you can see what has been fixed. Then check
http://mirror.contribs.org/smeserver/releases/7.1/smeupdates-testing/i386/RPMS/to verify for yourself that the 08kmods are there. Then if you want, enable the smeupdates-testing repo and do a yum update and you will get all of the files that will be included in 7.1.1, or get the individual ones. Disclaimer, I have not tested getting indivdual ones.
There should be an announcement in the coming days stating something to the fact that more wide spread testing of the upcoming 7.1.1 updates are needed and that the updates are in the smeupdates-testing repo.
John