Thomas,
    
     I tried the basic cd described in the readme, and got to a boot error when the kernel tried to mount /proc.  I was able to spin one when I included --package=policycoreutils, but then it dropped me to a basic shell when it encountered the following chunk of code in mayflower:

 exec /sbin/run-init -c ./dev/console /sysroot \$init \$initargs
    echo "---------------------------------"
    echo "WARNING: Error running run-init!"
    echo "---------------------------------"
    echo
    echo "Dropping to a shell. Good luck!"
    echo
    bash

Like the error states, I don't believe I included a package (or packages) related to system initialization in the basic livecd.  Because of the above errors, I moved onto the full livecd creation script, which then led me to the error I posted a little while ago...  My next move will be to create a local yum repo and spin one from that repo.  Have you had similar problems? or heard of anything like what I've encountered?

-Adam