Following the instructions I've reached the point of
http://www.gentoo.org/doc/en/handbook
handbook-x86.xml?style=printable&full=1#kernel_modules (section 22)

I do this,

Code Listing*22: /etc/modules.autoload.d/kernel-2.4 or kernel-2.6

3c59x
Now run modules-update to commit your changes to the /etc/modules.conf file:

Code Listing*23: Running modules-update

# modules-update

When I enter modules-update it fails and tells me;
Warning: could not generate /etc/modprobe.conf!

I have followed instructions, I am doing the 2.6 kernel so I DO take notice
to follow directions for kernel 2.6.5

I've been all over google and the gentoo forums and can't find anyone else
having this same problem..

Help! Please!! I'm a gentoo newbie....

Thanks!!