OK, everything's up and running. Still when the system starts up it prints this message

" mount: fs type devpts not supported by kernel "

Did I miss something when I compiled the kernel?

Do you guys recommend updating the kernel to 2.6.x or just leave it as it is?
where can I get the BLFS package?
any recommendation for a guy who just finished his first LFS installation?

You probably didn't enable devpts filesystem in kernel configuration.
In File Systems section enable /proc and /dev/pts file system.

Recomendation: Get BLFS 5.0 packages, install software that will make your Linux complete OS, with grafical iterface.

I would recommend that you make a backup copy of your new LFS system. Boot into your host system, become root,

cd /mnt
tar cjf lfs.tar.bz2 lfs

That way if you make a mistake installing something in Beyond LFS you can delete everything on the partition. Boot into your host system, become root,

cd /mnt/lfs
rm -rf *
cd ..
tar xjfp lfs.tar.bz2

..and everything's back how it was, no harm done.
Also, I would suggest building BLFS with scripts. You can prepare the scripts in your host system by copying and pasting the commands from your browser then reboot into LFS and run the script. Don't forget to put && at the end of every line, that way it will stop at the first error and you can see what went wrong.