Someone needs to fix the download servers...  If you need a new host just let me know (and send me the file):

make[2]: Entering directory `/usr/src/CVS/openwrt/package/linux'
/usr/src/CVS/openwrt/scripts/download.pl /usr/src/CVS/openwrt/dl kernel-binary-wl-0.2.tar.gz ab2a6d39ccb550e494bbeccf1b0e228f http://openwrt.openbsd-geek.de
--05:02:25--  http://openwrt.openbsd-geek.de/kernel-b … 0.2.tar.gz
           => `-'
Resolving openwrt.openbsd-geek.de... failed: Host not found.
Download failed.
--05:02:25--  http://openwrt.inf.fh-brs.de/mirror/ker … 0.2.tar.gz
           => `-'
Resolving openwrt.inf.fh-brs.de... 194.95.66.66
Connecting to openwrt.inf.fh-brs.de[194.95.66.66]:80... connected.
HTTP request sent, awaiting response... 404 Not Found
05:02:26 ERROR 404: Not Found.

Download failed.
No more mirrors to try - giving up.

Using HEAD branch, things are even odder -- after selecting exit from make menuconfig, I get:

make[3]: Entering directory `/usr/src/CVS/openwrt/package/busybox'
make[3]: *** virtual memory exhausted.  Stop.

(this is on a box with 512 MB RAM and happens immediately, without swap activity or OOMs, so I guess I'm hitting a bug in make (GNU make 3.80)?)

you have to update make, I had the same thing but after I upgraded GNU make + patch it worked fine

TESTED has been obsolete for a long time now and HEAD is our bleeding-edge stuff.
I suggest that you use the whiterussian tag when checking out OpenWrt CVS.

The latest official release (3.80) still has the problem, even with HEAD, but ftp://alpha.gnu.org/gnu/make has version 3.81beta3 and that seems to be working (compiling as I write this).