| While I understand that you want to put together your own distro (which you can do with LFS), us telling you what you would need is definitely not going to prepare you for that.
Ubuntu is a distribution that is particularly geared to new users, and can get you into the Linux world. Once you're familiar with Linux applications and such, you can move to a different distro and start playing with the kernel, playing with desktop environments, etc. Debian and Gentoo are both distros that for the installation throw you into a commandline and let you do it all yourself. So you can always try that once you're more familiar. Remember that you will probably change distros MANY MANY MANY times (I think I'm on my 7th, and people like techieMoe have tried probably over 20).
To answer some of your more specific questions:
The kernel is the part that communicates with the hardware. Drivers are generally either built-in (that is, hard compiled in) or are modules (can be removed from the kernel at will and re-added: this can help maintain a smaller kernel size). You will probably never need to actually go and download drivers except for ATI and nVidia, and wireless drivers. Everything else can be solved with a simple kernel recompilation or loading of an already-compiled module.
There are TONS of desktop environments, and each has its supporters. The two most common are Gnome and KDE. Ubuntu uses Gnome, SuSE uses KDE (or does openSUSE use Gnome now?), Kubuntu uses KDE, Knoppix uses KDE, and many distros allow you to choose. There are also many others: I personally use Fluxbox, there's Enlightenment, Rox, etc. The trick is just to try out as many as you want until you find one you like. All of them are simply a graphical layer on top of the raw shell. Remember that it is very possible to run and use a Linux system entirely from commandline, and some people do. The graphical environment is only for prettification and ease of use.
I've said this before, but the trick is to play with everything. Try different distros, different desktop environments, different software. This is the only way you will learn which is the "best" for you.
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DISTRO=Gentoo
Registered Linux User #388732
Gentoo Linux, 410 GB HD, 1.2 GB RAM, Fluxbox, These are a Few of my Favorite Things
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