Tanknspank - yes, you have it right. Create a plain text file, I copied and pasted the text from Se7enLC's post into it, saved it and removed the txt extension. I then copied it to my SD card and used root explorer to move it to system/etc/init.d (you will need to change the folder to read/write first by clicking the button at the top of root explorer). I then changed the permissions to user/group/others read and execute, noone write, to match the other files in the folder with root explorer and rebooted.
I'm sure it could be done with terminal, but I'm not sure what the numeric code for the permission change using chmod would be. Hope this helps.
what are you guys naming this file?