I dont know if I need to compile one or not.
I would have expected the install to have built or supplied the initrd.img if it was required. The initrd is an optional bootstrap stage to minimize the number of modules that have to be built into the kernel (so it is common to have it in newer distros). Is there a '/etc/mkinitrd' directory on the PHLAK partition?
It isn't necessarily called initrd.img; could be something like 'root.gz'. Perhaps if you could give a directory listing of /boot on the PHLAK partition it would give some help.
It looks like a fairly old distro, so I'm not sure how much help you can get from the original distributors.
Incidentally, did you actually install
PHLAK or is it just a copy from the CD?