Kernel panic - not syncing : No init found

Hi folks,

I finished building a LiveCD on BLFS 6.1 and got it burnt on CD-RW. It started boot but hung on;

Code:

.... ...... NET:Registered protocol family 1 NET:Registered protocol family 17 ACPI wakeup devices SLPB PCIO USB0 USB1 USB2 UAR1 LPT1 ACPI:(support S0 S1 S4 S5) RAMDISK:Compressed image found at block 0 VFS:Mounted root (ext3 filesystem readonly) - (remark: this time ext3, not ext2) - Freeing unused kernel memory:216K freed Warning:unable to open an initial console Kernel panic - not syncing : No init found Try passing init=option to kernel

During booting I saw it detecting mouse, etc.

configuration file;
/isolinux/isolinux.cfg

Code:

... label livecd kernel lfskernel append initrd=initrd.gz root=/dev/ram0 init=/linuxrc devfs=mount ramdisk_size=16384 vga=795 desktop=twm

Ran following test:
Mounting CD-RW on FC3

# gzip -dc /media/cdrom/boot/initrd.gz >initrd.img
# mkdir initrd
# mount -o loop initrd.img initrd
# ls initrd

Code:

linuxrc lost+found

After running follows;
# ls -l /media/cdrom/mnt/ | grep linuxrc

Code:

-rwxr-xr-x 1 root root 5675 Oct 28 12:28 linuxrc

# ls -l /media/cdrom/ | grep linuxrc
(No printout)

changed configuration file /isolinux/isolinux.cfg as

Code:

... label livecd kernel lfskernel append initrd=initrd.gz root=/dev/ram0 init=/mnt/linuxrc ramdisk_size=16384 vga=795 desktop=twm

Burned another CD-RW and Booted it again. It also hung at the same warning as abovementioned.

# gzip -dc /media/cdrom/boot/initrd.gz >initrd.img
# mkdir initrd
# mount -o loop initrd.img initrd
# ls -l initrd

Code:

total 12 drwx------ 2 root root 12288 Nov 1 09:54 lost+found

linuxrc was not there.

Please shed me some light where I have to check to get the problem solved. TIA

Remark:
I have /usr/ compressed as usr.sqfs, otherwise not sufficient space on CD-RW

BR
satimis