HydroSan - not stupid to ask but yes to "DEVFS support and enable 'Mount At Boot'" (I had to double check). Although I think this would show up a little later in the boot process?
dsd -
Before heading too far down this path, I have been unable to boot an install disk with a 2.6 kernel (have tried a gentoo one and Fedora Core 2 test3). I too am suspicious about my hardware as I have seen other posts in the forums of Athlons running 2.6.x kernels (obviously booting OK) although I have seen at least one with exactly the same symptoms as mine - no fix posted

.
... anyhow a brief outline:
1) copy .config from working 2.4.x kernel to 2.6.x directory;
2) make oldconfig #(accept defaults)
3) make xconfig - save - exit #(cofigure as per preceeding discussion)
4) make bzImage
5) make modules_install
6) mount /boot
7) cp /usr/src/linux-2.6.6-rc2/arch/i386/boot/bzImage /boot/vmlinuz-2.6.6-rc2
8.) edit grub.conf (new stanza: copy a working one and change the kernel name to match the one I just copied into boot
9) reboot
If you could send me a minimal .config that would be cool (I'd be a bit worried about taking out something important).
The hardware is generally pretty stable (I can change that by attempting to overclock - so I don't anymore).
Thanks for taking an interest this has been bugging me for a while