step 7 seems to be one of the most important steps: configuring the kernel. you must specify everything that you need, and that are a lot of questions... if you run in graphics mode, maybe "make xconfig" is easier, but it won't pick up the 2.4 config, so you have to anwser every question. first time(s) kernel configuring may take some hours to get it right
if you miss an option there's a chance some things won't work and you need to reconfigure...
greetz,
.-=~ iluvatar ~=-.