Thanks (yet again) Old-Polack! Based on your assurances above, I used Synaptic to install the new kernel-2.6.38.8-pclos3.bfs (version 1-1pclos2011) & it's associated kernel-devel-2.6.38.3-pclos3.bfs kernel headers, and yes choosing linux from the boot menu does indeed boot that new kernel. Afterwards I also used Synaptic to uninstall kernel-2.6.33.5-pclos1.bfs & it's associated kernel-devel headers (that version may have been the base kernel from my initial install from LiveCD (PCLOS2010.7? I forget....), just to reclaim aprox 56MB diskspace on my / partition. My current Grub menu list file now has these entries:
[root@localhost ~]# cat /boot/grub/menu.lst
timeout 10
color black/cyan yellow/cyan
gfxmenu (hd0,4)/boot/gfxmenu
default 3
title linux
kernel (hd0,4)/boot/vmlinuz BOOT_IMAGE=linux root=LABEL=PCL-root vmalloc=256M resume=LABEL=PCL-swap splash=silent vga=788
initrd (hd0,4)/boot/initrd.img
title linux-nonfb
kernel (hd0,4)/boot/vmlinuz BOOT_IMAGE=linux-nonfb root=LABEL=PCL-root vmalloc=256M resume=LABEL=PCL-swap
initrd (hd0,4)/boot/initrd.img
title failsafe
kernel (hd0,4)/boot/vmlinuz BOOT_IMAGE=failsafe root=LABEL=PCL-root failsafe vmalloc=256M
initrd (hd0,4)/boot/initrd.img
title windows
rootnoverify (hd1,0)
map (0x81) (0x80)
map (0x80) (0x81)
makeactive
chainloader +1
title 2.6.33.7-pclos4.bfs
kernel (hd0,4)/boot/vmlinuz-2.6.33.7-pclos4.bfs BOOT_IMAGE=2.6.33.7-pclos4.bfs root=LABEL=PCL-root vmalloc=256M resume=LABEL=PCL-swap splash=silent vga=788
initrd (hd0,4)/boot/initrd-2.6.33.7-pclos4.bfs.img
title 2.6.38.8-pclos3.bfs
kernel (hd0,4)/boot/vmlinuz-2.6.38.8-pclos3.bfs BOOT_IMAGE=2.6.38.8-pclos3.bfs root=LABEL=PCL-root vmalloc=256M resume=LABEL=PCL-swap splash=silent vga=788
initrd (hd0,4)/boot/initrd-2.6.38.8-pclos3.bfs.img
This menu file retained WindowsXP as the the default operating system ("default 3"), and all working fine.
I've marked this thread as [Solved]. Thanks O-P.