Installing advanced kernel,configuring mouse:help required

[Kaustubh Ghosh]

I have installed the kernel-2.6.4 from http://people.redhat.com/arjanv/.(Only 
the rpm kernel-2.6.4-1.257...... no other packages)
I had also added a line "alias usb-controller uhci-hcd" in 
/etc/modprobe.conf.FC1 now can be booted into it.But it gives errors during 
booting:

Initialising USB Controllers:
     fgrep:/proc/bus/usb/drivers:no such file or directory.
                                                                          [OK]
Initialising USB keyboard:
     FATAL:Cannot find module usbkybd
                                                                 [FAILED]
IInitialising USB mouse:
     FATAL:Cannot find module usbmouse
                                                                 [FAILED]

kudzu cannot detect any mouse and asks for removing configuration of the 
Generic Mouse.If I remove it I can log on to text prompt but the X-server 
would not start.If I do not remove it I graphical prompt tries to load but 
fails.It then tries to configure my mouse ,asks me to select a mouse type but 
ultimately fails and system hangs.

But when I boot to my old kernel (2.4......nptl... that came with Fedora) 
everything works fine .It detects all my hardware (mouse,keyboard etc) but 
gives an error:

mount:fs sysfs is not supported by kernel.

I created /sysfs directory as per instructions in www.fedoranews .org as:

"Kernel v2.6 now uses a new filesystem, create a new mountpoint in / and add 
the proper line in /etc/fstab:
$ sudo mkdir /sys
$ sudo echo "none /sys sysfs defaults 0 0" >> /etc/fstab # Or use vi, nano, 
emacs...
Almost done, sometimes you got problems with the default initrd provided by 
the rpm, so you better rebuild it:
$ sudo mv /boot/initrd-2.6.0-1.1.103.img /root
$ cd /lib/modules
$ sudo /sbin/mkinitrd /boot/initrd-2.6.0-1.1.103.img 2.6.0-1.1.103/
Next thing you need to do is move your hwconf file:
$ sudo mv /etc/sysconfig/hwconf /root"

  I guess removing the directory(entry) will fix this.Otherwse no problem.
I log on to graphical prompt and can perform all operations.

Can anyone tell me how to get kernel-2.6.4 to work in graphical mode.
Thanks in advance.