kernel-sourcecode-2.6.6-1.406 fails on loopback

[raxet]

406 fails on custom kernel build-

 make install
make[1]: `arch/i386/kernel/asm-offsets.s' is up to date.
  CHK     include/linux/compile.h
Kernel: arch/i386/boot/bzImage is ready
sh /usr/src/linux-2.6.6-1.406/arch/i386/boot/install.sh 
2.6.6-1.406custom arch/i386/boot/bzImage System.map ""
All of your loopback devices are in use.
mkinitrd failed
make[1]: *** [install] Error 1
make: *** [install] Error 2

This also was the case with kernel-2.6.6-1.406.i686.rpm install routine.

RaXeT