UPDATE: Apparently these steps also work on Fedora 17. Moreover, if you use Gnome3, there are some additional instructions that can help you get ElectricSheep setup.
Quick link: Updated makeSheepFedora16.sh install scriptA while back, I wrote a post summarizing how to get ElectricSheep running on Fedora 15 with KDE 4.6.5. Today, I "upgraded" to Fedora 16 and was surprised to find that library updates were incompatible with ElectricSheep. Symbol mismatches made it impossible to simply symlink old shared libraries to new shared libraries. Moreover, the version of electricsheep that built fine on Fedora 15 would not build on Fedora 16.
So I made some modifications to Tait Clarridge's script to fix the build. My hacks seem to work for me so far; hopefully they do not introduce regressions into the already old version of electricsheep.
So to get ElectricSheep running on your Fedora 16 system, try downloading and running my modified makeSheepFedora16.sh script. As a bonus, it (hopefully) will install ElectricSheep as a screensaver if you are running KDE. However, the same DPMS caveats about mplayer from old post still apply until Fedora updates their mplayer to a recent version (why does it take these people so long?).