Install Problem,

I downloaded and installed 3.4 with the 2.6 kernel onto my HD.
When i boot into Old Linux (2.4) my system runs fine.

During boot up into 2.6 i get an error message that says:

Fix your init scripts?

and then the boot continues.
I followed the install instructions but the system stalls when KDE starts up using the 2.6 kernel.
Only the keyboard reponds, no mouse and I am missing most of the drives that mounted when I used the Live CD.

Has this happened to anyone else?
Is there any way to fix this?

Thanks