First, there are thousands of kernel-compiling howtos floating around, including at least one here in the wiki. That is your first step. There is also instructions in the readme and install files in the kernel package you downloaded.
Edit: Here is the howto from the LQ wiki:
Second, I see you are running SuSE. Using a vanilla kernel with a SuSE box is a bad idea in my opinion. I ran SuSE for years and using vanilla kernels has always been bad. SuSE does some Novellish magic with their kernels, patching and such, and it is much easier on the user to stick with SuSE provided kernels. That is not to say you cannot recompile your existing kernel, or compile a new one from the kernel source package (available in YaST), just make sure you are using a SuSE kernel package.