This is very presice and short note regarding kernel compilation. If you have any doubts please you can ask freely . Just leave a comment here

The following packages are needed for compiling kernel

glibc-headers

glibc-devel

cpp-*

binutils-*

gcc-*

Optional Packages [ require on method of Compilation ]

if using xconfig method

tcl-*

tk-*

or qt3*

if using menuconfig

ncurses*

ncurses-devel*

Please note * means version and machine architecture

Download the kernel versions from kernel.org site and extract it
now following commands are to be fired [ as this is short note no details about command are given ask question by commenting ]

#make mrproper

#make xconfig  –> Graphical and best way

#make menuconfig
The above two option are for customizing kernel accordingly to requirements

#make dep

#make clean

#make bzImage

#make modules

#make modules_install

#make install

and yes it is installed

NOTE:- EXECUTING SOME COMMAND MAY TAKE SOME TIME AND SYSTEM RESOURCES