The other thing that comes to mind is that you don't have an initrd file. Now, with GRUB, you can get away without one of these, but I'm not so sure on LILO.

If you are working from RedHat, there should be a directory in /lib/modules named after your new kernel. If you do "mkinitrd /boot/initrd-2.4.22x 2.4.22x" then you can make one of these files. It's the ram-image needed to boot the kernel.
I haven't got a clue about making the initrd image from hand, but it looks like a real headache to do.

Ok, so Ive got a working compiled kernel, AND it works with ACPI. Now heres the bad part. I cant use my mouse/touchpad/cd-rom etc. It says something about the devices have been removed, but I didnt do it. Is it possible I could have left them out of the kernel?

Yup.

You really have to be careful with your kernel configurations. If I were to build a kernel, you have to make doubly sure that you have everything you need in there. Some stuff is obvious, but some other stuff isn't. That's why it's usually a good idea to get your own Kernel config from your old kernel and whack it in your new kernel directory (as .config) after you have done make clean and make mrproper. Saves a lot of messing around.

Forgetting to put important stuff (like your mouse or old CD-ROM drive) in the kernel or a module at least, is like racing off to work and forgetting your briefcase. It's embarrassing to have to leave work, go back home and get what you wanted, and then come all the way back again.