i have looked in the archives but could not find the instructions on how to create a .pkg file to install software that isn't already in a .pkg file format. does anyone know how to do this?

If it helps you:
http://www.cobalt.com/support/kb/search.php3?ques=pkg&qid=369&language=1

The Cobalt KB article refers to documentation available on their FTP site, but it doens't have the correct path.

It should be ftp://ftp.cobaltnet.com/pub/developer/TechNotes/