I'm not sure, but I think it wants the 3.4 compiler. I don't know what distro you're running but your package manager du jour should be able to install this for you.
Now you need to tell it which compiler to use.
Code:
su
CC=gcc-3.4
export CC
exit
CC=gcc-3.4
export CC
This will set an environment variable telling it what compiler you have.
You may also have to download a great deal of the kernel source in order to do this. What distro?