Here’s an update:
After our EE 1.6.8 install was successfully upgraded to EE 2.0 PB (not an easy task, btw), we then wanted to verify functionality of one of our sites running under MSM that was based on eeSiteKit 1.
Everything seemed to be working as expected with the exception of navigation.
The problem was caused by failure of the EE 2.0 installer to consistently replace “embed:weblog” and “{weblog}” with “embed:channel” and “{channel}, respectively.
After carefully using EE CP Search and Replace operations on the eeSiteKit templates, everything is back to normal with eeSiteKit as far as we can see.
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Next, we are anxious to try eeSiteKit 2 in EE 2.0, but have read eslewhere in these forums that there are “significant” issues in EE 2.0 and eeSiteKit code rewrites that presently aren’t allowing that to happen.