kernel-2.6.7-1.509 panic at boot

[Satish Balay]

I've installed today's rawhide updates - which included kernel-2.6.7-1.509.
On reboot I get:

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Uncompressing Linux... Ok, booting the kernel.
audit(1092071072.280:0): initialized
Red Hat nash version 4.0.2 starting
exec of init failed!!!: 14
Kernel panic: Attempted to kill init!
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This is on a TP 600E with the following boot options:
kernel /vmlinuz-2.6.7-1.509 ro root=LABEL=/ selinux=0 rhgb quiet acpi=off

Satish