I am also struggling with this. However I do not want to use another distro.
My n2600 is now command line only (Slackware 14) which is fine for the moment but I would like to be able to start kde if possible.
I do not understand why this driver needs to be incorporated into the kernel. Can't it be loaded as a module?
I am happy with the 11.5W power consumption of the entire PC but if hardware support for it is limited I may scrap the whole thing.
If I have some spare time I will download the intel driver and see if I can try to get it to work.
There is a similar howto as the one for ubunto available for fedora16 :