I've read through the various mode stickies, and spent hours messing around with them. This is my explanation of how to use and apply modes to my understanding. I would love a yes, that is correct, or no, and perhaps a hint as to what needs to be studied more to finnaly make them click. Here is the original post:

My biggest problem, is I know the modes/patterns. I just can not find a decent lesson that explains how to apply them. I've spent a good 4-6 months learning the patterns, I just can't figure out how to analyze the music to know which mode is appropriate to play. Any links would be awesome. I can build them, on the guitar and on paper, but I don't really understand when to use them.

IE Modes based on C Major Scale

Ionian: C D E F G A B C
Dorian: D E F G A B C D
Phyrgian: E F G A B C D E
Lydian: F G A B C D E F
Mixolydian: G A B C D E F G
Aeolian: A B C D E F G A
Locrian: B C D E F G A B

Chords in Key of C
C Dm7 Em7 FM7 G7 Am7 Bdim

What I don't understand is where do I go from here. My recent understanding is that you have to rebuild all of the chords from the mode. IE C Lydian would use the chords

CM7 D7 Em7 Fdim G Am7 Bm7 (Same chords as G Major reorganized?

So by combining these chords into a progression with the

C Lydian scale (G Major just reorganized)
C D E F# G A B C

turn into improvising in Lydian, with the "Lydian feel"?
I read it. I'm just trying to find a confirmation on whether I understood what I read or not
I'm not exactly an expert on explaining mode application but I will try to help you. I don't think you can have a modal progression using all of those chords. If you use all of those chords you will be playing in G major. If I wanted to play lydian I would use the I and II chords. So if I were writing in F lydian I would use some sort of F major-Gmajor chord. IF i used too many different chords the tonality would pull to C and I would just be playing in C major. If that doesn't make sense then wait for someone smarter to post lol.
Basically, what you need to understand is the concept of harmony, as opposed to just "which chords are in a key". Judging by your question, I would say you aren't comfortable yet with even analysing more conventional harmony and listening to it. How comfortable would you be writing out a progression that went from a major key to it's relative minor?