My question is, is there anything special I need to do before trying to compile this again, or can I just wipe out my linux-2.6.7 directory and start over from scratch?
Have you considered building from the source RPM? Unpack it, edit the config file of your choice, and add your initials or another identifier to the revision string in the spec file. Then rebuild and install the resulting binary RPM.
I did this to add legacy PTY's to the kernel. The hard part was figuring out what to put in the config file. (I needed an extra variable defining how many PTY's in addition to the one that enables the support.)