i have compiled 2.6.3 kernel many times for fedora 1 redhat 8.0 and 9.0.. it works.
extract kernel in /usr/src and if needed patch it. read REAME file in kernel source directory..
create symbolic link..
ln -s /usr/src/linux-2.6.x /usr/src/linux
cd /usr/src/linux
configure kernel source.. u need to know what type of hardware u have.. u may type "lspci" to see pci devices.
make xconfig
make bzImage
make modules
make modules_install
cp System.map /boot/System.map-2.6.x
cp arch/i386/boot/bzImage /boot/vmlinuz-2.6.x
mkinitrd /boot/initrd-2.6.x.img 2.6.x
edit "/boot/grub/grub.conf" and add necessary lines if u use grub...
for lilo edit /etc/lilo.conf
and add necessary lines.. and type "lilo" and hit enter
if u want more info, u must check this forum..
http://linuxquestions.org/questions/...threadid=91503