To build MILO, change your working directory to the MILO source directory and invoke make with:
$ make KSRC=/usr/src/linux config
Just like the Linux kernel, you will be asked a series of questions
Echo output to the serial port (MINI_SERIAL_ECHO) [y]
It's a good idea to echo kernel printk to /dev/ttyS0 if you can. If you can (and want to), then type "y", otherwise "n". All of the standard, pre-built, MILO images include serial port I/O using COM1.
Use Digital's BIOS emulation code (not free) (MINI_DIGITAL_BIOS_EMU) [y]
This code is included as a library which is freely distributable so long as it is used on an Alpha based system. The sources are not available. If you answer n then the freeware alternative BIOS emulation will be built. It's sources are included with MILO. Note that you cannot right now build choose Digital's BIOS emulation code in an ELF system (the library is not yet ready) and so you must answer no to this question.
Build PALcode from sources (Warning this is dangerous) (MINI_BUILD_PALCODE_FROM_SOURCES) [n]
You should only do this if you have changed the PALcode sources, otherwise use the standard, pre-built PALcode included with MILO.
You are now all set to build the MILO image itself:
$ make KSRC=/usr/src/linux
When the build has successfully completed, the MILO image is in the file called milo. There are a lot of images called milo.*, these should be ignored.