ok when it gets to


#
>>> Unpacking linux-2.6.20.tar.bz2 to /var/tmp/portage/sys-kernel/sabayon-sources-2.6.20-r3/work
#
 * Applying suspend2-2.2.9.3-for-2.6.20-rc4.patch.patch (-p0+) ...        [ ok ]
#
 * Applying ipw3945-1.2.0-2.6.20.patch (-p0+) ...                         [ ok ]
#
 * Applying fbsplash-0.9.2-r5-2.6.19-rc2.patch (-p0+) ...                 [ ok ]
#
 * Applying squashfs-3.2-2.6.20.patch (-p0+) ...                          [ ok ]
#
 * Applying 2.6.20-mactel.patch (-p0+) ...                                [ ok ]




then  
in a seperate root shell do
cd /var/tmp/portage/sys-kernel/sabayon-sources-2.6.20-r3/work

then
mkdir boot

if you do it to soon while it is doing

>>> Unpacking linux-2.6.20.tar.bz2 to /var/tmp/portage/sys-kernel/sabayon-sources-2.6.20-r3/work

it will return an error

just make sure to do the mkdir  while it is doing the patches