You have to configure X by using the "xorgconfig" command. It's pretty easy, all you need to know is your video card and monitor settings. Then after that if you want X to start on boot up you need to edit the inittab file. # Default runlevel. (Do not set to 0 or 6)
id:4:initdefault: change the 3 to 4.
to get the 2.6 kernel go to www.kernel.org.
then move it to /usr/src/ make a symbolic link to /usr/src/linux then cd /usr/src/linux make mrproper--> make gconfig (or what ever one you want to use) this part will take you a while if it's your first time. Then make bzImage--> make modules---> make modules_install--> then make your links to /boot, edit /etc/lilo.conf then /sbin/lilo then reboot. If this is your first time building a kernel i'd recommend making a boot disk if you haven't yet!