Let me tell you what have I done so far with no problem.

Downloaded 2.6.8 kernel
Downloaded cloop patch for 2.6.8

Untared the kernel and cd to it
Applied the cloop patch
copied fstab from my hard drive install to the chrooted enviroment in order to avoid "fstab was not found" while installing the kernel.
created the deb package for the kernel and installed it.
It told me that I should point lilo to the newly installed kernel. I did not edit lilo.conf though.
I have managed to mount minrt26 and view all the directories and files.

After this step I think I am missing a step concering modules.
Correct me if I am wrong with the fallowing assumptions. Believe me I have done extensive searches.

Here it goes.

I need to create a symlink of the /lib/modules/2.6.8-cloop from the chrooted enviroment into minrt26 /lib/modules? As of now there are modules only for 2.4.26 and 2.6.6 within minrt26.

I need to edit the linuxrc file. Problem with this is , I am not sure what to look for and edit. I have located few lines in the script about loading scsi modules, but again I am not sure what to look for and what to edit.

I am this close in making my custom kernel work but i need some direction in finding the missing link.

Help ?