To build RPMs without being logged in as root, first create a file ~/.rpmmacros along the following lines:

%_topdir        /home/iay/rpm
%packager       Ian Young <ian@iay.org.uk>

Create the build environment inside your user directory as follows:

mkdir -p ~/rpm/{BUILD,RPMS/{i386,i686,noarch},SOURCES,SPECS,SRPMS}

Building from SRPMs is a cycle of using rpmbuild --rebuild in the user directory and then rpm -ivh as root, either in a separate terminal window or using sudo.  My standard SP "smoke test" goes like this:

As root:

As iay: