Run the daemon from a command line, rather than a startup service, and add some debug / verbose flags (see manpage for the exact options) and you should see plenty.
What client and what config file do you mean? Naturally you need the client software installed if you want to use client functionality. You would run plain / StartTLS serviecs on 389, or SSL on 636.
Is there a genuinely legit reason for running from source instead of RPM? You may prefer to use existing RPM's, although at the same time, el5 uses openldap 2.2 officially, so you'd need to find others, and so the benefit does wain somewhat.