[Fedora-livecd-list] Boot error with PXE boot on Fedora 17

[Sukesh Nischal]

I have made a custom Fedora 17 LiveCD based on the lxde kickstart
(fedora-livecd-xfce.ks). Just added some extra packages, but mostly the
same as the original.

I want to PXE boot this CD so i used the livecd-iso-to-pxeboot to make a
PXEBoot environment. This livecd will not boot via PXE Boot
The error I get is:

losetup: failed to setup loop device: No such file or directory
dracut Warning: Unable to process initqueue

The boot stops and I get dropped to a dracut shell.

Can anyone shed light on this error?