I'm not sure...I had no problems when compiling 2.6.
have you enabled the following thing in your kernel (read below)? I've been hearing news that unless enabled, console problems will most certainly appear.....
in File Systems -> Pseudo Filesystems -> dev/pts file system for Unix98 PTYs (and possibly too: Device Drivers -> Character devices -> Unix98 PTY support)
I'm not sure if this has nothing to do with you, but I did enable them because I don't like compiling kernels all day....
better make sure in the first time.