Comment 20 for bug 110581

Basically follow: http://ubuntuforums.org/showthread.php?t=43065
Additionally:
run: sudo make oldconfig before doing make xconfig or make menuconfig (this copies current kernel configuration)
disable "kernel debugging" in "kernel hacking" section (this makes deb package ~18MB instead of 200MB)
use: sudo make-kpkg --initrd --append-to-version=-custom1 kernel_image kernel_headers
to compile the kernel instead of command suggested in the thread I mentioned. This will make the kernel boot properly. Besides kernel-headers package will be made.
Expect sound, wifi etc. to be broken after booting the new kernel. Some modules available in ubuntu kernel are not compiled unless you enable them in configuration.