(wasn't sure if this should be filed against mount, initscripts, or
anaconda)
build qa0321.2
The following error message occurs at boot on a system that has been 
upgraded from 6.2 --> 7.1.

Activating swap partitions:  swapon: cannot stat /space/SWAP: No such file
or directory
[FAILED]
 
The system was originally built with about 265 Megs of swap space.
The '/space/SWAP' file (about 255 Megs) was added by Anaconda during
the upgrade.
I repeated the install to see if the placement of the newly added SWAP file
had anything to do with the error message.  This time I created the SWAP
file on the same partition as '/'.
***There is no error message at boot time when the SWAP file is placed in 
the '/' directory.***  It only appears to cause the error message when the
SWAP file is added to a non-root partition. 

according to 'free', the SWAP file is functional (regardless of placement):
             total       used       free     shared    buffers     cached
Mem:        249052      26656     222396          0       4980      13860
-/+ buffers/cache:       7816     241236
Swap:       524920          0     524920
--------------------
FWIW, 'fdisk -l' and 'fstab' from the 'broken' system (SWAP on 
non-root partition):
fdisk -l /dev/hda:
Disk /dev/hda: 255 heads, 63 sectors, 1027 cylinders
Units = cylinders of 16065 * 512 bytes

   Device Boot    Start       End    Blocks   Id  System
/dev/hda1   *         1         4     32098+  83  Linux
/dev/hda2             5      1027   8217247+   5  Extended
/dev/hda5             5       387   3076416   83  Linux
/dev/hda6           519       535    136521   82  Linux swap
/dev/hda7           536       552    136521   82  Linux swap
/dev/hda8           388       451    514048+  83  Linux

fstab:
/dev/hda5               /                       ext2    defaults        1 1
/dev/hda1               /boot                   ext2    defaults        1 2
/dev/cdrom              /mnt/cdrom              iso9660 noauto,owner,ro 0 0
/dev/hda8               /space                  ext2    defaults        1 2
/dev/fd0                /mnt/floppy             auto    noauto,owner    0 0
none                    /proc                   proc    defaults        0 0
none                    /dev/pts                devpts  gid=5,mode=620  0 0
/dev/hda6               swap                    swap    defaults        0 0
/dev/hda7               swap                    swap    defaults        0 0
/space/SWAP             swap                    swap    defaults        0 0
-------------------------
'fdisk -l' and 'fstab' with SWAP on '/' partition:

fdisk -l /dev/hda:
Disk /dev/hda: 255 heads, 63 sectors, 1027 cylinders
Units = cylinders of 16065 * 512 bytes

   Device Boot    Start       End    Blocks   Id  System
/dev/hda1   *         1         4     32098+  83  Linux
/dev/hda2             5      1027   8217247+   5  Extended
/dev/hda5             5       387   3076416   83  Linux
/dev/hda6     519       535    136521   82  Linux swap
/dev/hda7           536       552    136521   82  Linux swap

fstab:
/dev/hda5               /                       ext2    defaults        1 1
/dev/hda1               /boot                   ext2    defaults        1 2
/dev/cdrom              /mnt/cdrom              iso9660 noauto,owner,ro 0 0
/dev/fd0                /mnt/floppy             auto    noauto,owner    0 0
none                    /proc                   proc    defaults        0 0
none                    /dev/pts                devpts  gid=5,mode=620  0 0
/dev/hda6               swap                    swap    defaults        0 0
/dev/hda7               swap                    swap    defaults        0 0
/SWAP                   swap                    swap    defaults        0 0