Hi,
I tried doing what is mentioned in your post. It doesn't work.
One question: Can I take "synaptics_drv.o" as it comes with driver and put it in directory you mentioned OR As suggested in the driver's README I should use makefile and then copy this file. Moreover destination for this file suggested by you and that by README/INSTALL file with driver is different.
To be able to use Makefile I should have XFree86's source directory information, which apparently I don't.
abirla