Help getting started with Kernel Programming

Hello everyone, I want to learn Linux Kernel Programming, and I am searching for good and updated resources to read and understand how things work. I want to begin with compiling and using a kernel first and then making changes to it. However, I after searching a lot, I could not find any up-to-date procedure of compiling the kernel.

I would preferably like to do the experiments on my USB drive rather than hard disk so that my laptop will be safe. I have came across some terms like LILO and would also like to know how to compile the kernel, set up it on my USB drive and set LILO on the same so that I can start experimenting...

I have downloaded Linux 3.7.6 kernel tar.bz2 file and now trying to compile it somehow by following these guides,

http://www.berkes.ca/guides/linux_kernel.html

http://www.rapo.org/linux/BootableLinuxUSBDriveHowTo.html

However first one itself says its not elaborated enough, and second one uses Knoppix, which I have not heard of...

Any help about getting things started will be of a great help...