Description of problem: If I (for example) pungi a tree with no SELinux policy included, anaconda fails to load the policy. It then turns off the SELINUX flag in the loader... but never propagates it to the second stage. So, the installer allows you to configure SELinux for the installed system, and sets it up by default. Which then fails pretty spectacularly on reboot. Version-Release number of selected component (if applicable): F7
The loader was passing, we just stopped looking at it in anaconda. Fixed in CVS