Eric White wrote:
  
I've seen that a couple of folks have gotten Kadischi to build with FC3
and I thought I'd gotten the kinks worked out, but I continue to see
this error message at the end of the anaconda run:

making initrd image
/tmp/livecd-build_no26/system/lib/modules/None is not a directory.

  ***  Fatal error: /home/ewhite/src/tools/kadischi/livecd-mkinitrd.sh
returned non zero (256) exit code. Aborting execution.
    

https://bugzilla.redhat.com/bugzilla/show_bug.cgi?id=169812
  
This patch seems to fix it on the machines here.
Along with the above URL, see this also:
https://bugzilla.redhat.com/bugzilla/show_bug.cgi?id=178623