I haven't tried building a mkI kernel... but I assume it is just a matter of taking the car1 .config and compiling... I can do that for you if someone can get me a patch for Frank's IR trans against v2.00b3...
As for using setpowersource... what do you want to use to test for being in-car...? The setpowersource code itself should work fine... I am not sure when to call it on a Mk1... I use the presence of a tuner for my Mk2... but I don't think this will work with a Mk1... I can make a kernel image for you that will always think it is in the car...? I am thinking of trying to tie it it some buttons being held down on boot, but haven't started looking at that yet...
If we can work out something to test for when your mk1 empeg is in the car I might be able to put together an upgrade file for you...
Cheers
Kim