As I understand it, if I choose to upgrade to 2.6.20 from RedHat,
That would be a kernel from Fedora Core, not Red Hat Enterprise Linux (RHEL).
Remember, SME Server is based on CentOS, which is a rebuild of RHEL.
RHEL anally backports all fixes and newer support to the original kernel release.
I.e., all RHEL 4 releases use kernel 2.6.9, even though newer features are backported to that version in newer kernel releases.
future SME Server updates may either (a) fail or (b) revert the kernel back. Is this correct?
In general, you never want to run a Fedora Core kernel on RHEL.
In the end I thought a cheap hardware solution was the easiest fix until SME/CentOS moves to the 2.6.20 kernel.
That will happen with RHEL 5.
Red Hat purposely avoids moving to a newer kernel -- even over the 5-7 year release duration -- of any RHEL release for maximum ABI/API compatibility.