Why are you using xen? You got more than one VM there? You are going to have trouble with xen if you don't understand how it works.
"kernel build file not found in directory/lib/module/2.6.18-1.xxxx.fc6xen/build". I've checked the directory and the file's there.
Which file, where? Show the output of the ls command (and the command, and the prompt).
You realize you have to install all the development stuff for fedora seperately, don't you?
(Do you really
have a directory called "2.6.18-1xxxx.fc6xen" - sounds like Aussie beer.)
I'm gonna change distro to one that's user-friendly for a newb
... a very good idea in your case. The main advantage of fedora for a newbie is if you don't have a lot of bandwidth... then you'll get a pretty complete distro in one go. Otherwise, it is very much a tinkerers distro these days... I stopped using it because every time the maintainers had something set up just nice, they had to change it. May I suggest Ubuntu?