Can I go ahead and install this on my system, _AND_ do I need to re-edit my XConfig file (as previously, removing DRI, and changing "nv" to 'nvidia", switch to init 3, etc. or will the install do the necessary)?
The package is in QA, and therefore not quite ready for general use. A better way would be to use Nvidia's installer.
http://www.nvidia.com/object/linux.html
If you're not sure, use the IA-32 driver. Btw, read the readme. Yes, all your problems will be solved if you follow the instructions there :-).
Second question: how do I install the src package: rpmrebuild -rebuild package, then rpm-ivh package? (sorry, I confess I'm being a bit lazy ... or maybe it's Sunday morning... so go ahead and rap my knuckles! <G>).
man rpmbuild