[Fedora-livecd-list] f7 livecd-creator cannot umount image after recent yum updates

[Skunk Worx]

I ran yum updates two days ago and now the iso created by livecd-creator 
has a few issues. This is a Fedora 7 machine.

1) The tool complains that it cannot umount busy device :

...
Building an initramfs at /boot/livecd-initramfs.img for kernel 
2.6.23.15-80.fc7
FATAL: Module ide_cd not found.
FATAL: Module usbhid not found.
Done; initramfs is 4.3M.

umount: /var/tmp/livecd-creator-iiLVNk/install_root: device is busy
umount: /var/tmp/livecd-creator-iiLVNk/install_root: device is busy
ioctl: LOOP_CLR_FD: Device or resource busy
...

(otherwise completes successfully)

2) If I examine the final iso, mounting the squash image and then the 
os.img, I find the ext3 fs is inconsistent :

mount -o loop /tmp/foo_sqsh/os.img /tmp/foo_img
EXT3-fs: write access unavailable, cannot proceed.
mount: wrong fs type, bad option, bad superblock on /dev/loop3,
        missing codepage or other error
        In some cases useful info is found in syslog - try
        dmesg | tail  or so

dmesg :

loop: module loaded
EXT3-fs: INFO: recovery required on readonly filesystem.
EXT3-fs: write access unavailable, cannot proceed.

# file /tmp/foo_sqsh/os.img
/tmp/foo_sqsh/os.img: Linux rev 1.0 ext3 filesystem data (needs journal 
recovery) (large files)

(If I copy the os.img out to a r/w location I can fsck.ext3 it)

3) The /etc/mtab in the os.img ends up errant so sysfs mount on boot of 
media complains :

Remounting root filesystem in read-write mode:             [  OK  ]
Mounting local filesystems:  mount: sysfs already mounted or /sys busy
mount: according to mtab, /sys is already mounted on /sys
                                                            [FAILED]

For now I am fixing the iso with a script :

1) copy out/fsck.ext3 the os.img file
2) remove the errant /etc/mtab
3) rebuild the squashfs with the new os.img using mksquashfs
4) rebuild the iso

I thought this was obviously a kernel problem, but reverting to an older 
  kernel on the build host did not fix it.

TIA,
John