Comment 29 for bug 292159

jruss: the initrd.img is already gzipped (try "file /boot/initrd-VERSION.img" and you'll see), so just move it to /cdrom/casper/initrd.gz and it will work.
...And the kernel is in /cdrom/casper too (not /cdrom)...
Btw now i'm about to use simple loop images, because aufs has toooooo many bugs and stranges behaviors (at least for me) :P maybe i should post a simple installation script when i'm done...
thank you for the help, anyway