Hello
On the info you have provided.
i have the 2.6.7 kernel complied
i had to make initrd image I did as follows
I would make and initrd.img file based on your current kernel
cd /lib/modules
mkinitrd initrd-2.6.7.img 2.6.7
cp initrd-2.6.7.img /boot
cd /boot/grub
vi /boot/grub/menu.1st
add the following under were grub shows the information for my 2.6.7 kernel boot image.
initrd /boot/initrd-2.6.7.img
hope this helps