I thought I knew the answer to this question, but I want to double check with everyone.

When I (or anyone) downloads a new kernel to compile, say from www.kernel.org ... that obviously contains the source code. Does this code also contain the kernel-headers?

I guess my question is, do I also need to download updated kernel headers in addition to the new kernel source code? If so, are those also located on www.kernel.org? I can't seem to find them if they are.

Maybe a brief explaination from one of you experts is all I need? Thanks!

Not speaking the gospel but from what I've seen the source contains headers..I know my install cd kernel source had headers..Don't think it would compile if it didn't..

well, as it's source code the headers are naturally there as they are essential to compiling the kernel.

It's the distributions that always split them into seperate RPM's. If you go to www.kernel.org you'll get the whole package headers and source code. The reason why they have got the headers seperate is because officially the libc libraries have been compiled against the kernel headers of the original kernel which came with your system. So it's best to leave those in /usr/src/linux especially since most distributions still have /usr/include/linux as a link to the include files in there. And when you compile a new kernel just make another directory with the version number and don't change the symbolic link.
The LFS book at www.linuxfromscratch.org explains this in more detail.