Description of problem:
 When running the LTP SElinux and the HP audit-test-2090 test suites they both fail with the same error message:
root:system_r:unconfined_t is not a valid context

Version-Release number of selected component (if applicable):
RHEL5.3-Server-20081020.1

How reproducible:
Always

Steps to Reproduce:
1. Using the Beta tree RHEL5.3-Server-20081020.1 run either of the following tests. /kernel/security/audit/audit-test-2090 or /kernel/security/selinux/ltp-selinux/20080229
  
Actual results:
<snip>
make[2]: Leaving directory `/mnt/tests/kernel/security/audit/audit-test-2090/audit-test/utils'
make[1]: Leaving directory `/mnt/tests/kernel/security/audit/audit-test-2090/audit-test'
echo "Done building for i386"
Done building for i386
chmod +x ./runtest.sh
./runtest.sh
Changing password for user eal.
passwd: all authentication tokens updated successfully.
Stopping auditd: [  OK  ]
Starting auditd: [  OK  ]
Starting vsftpd for vsftpd: [  OK  ]
***** Starting the runtest.sh script *****
***** Current Test Version = rh-tests-kernel-security-audit-audit-test-2090-1.0 *****
***** Current Running Kernel Package = kernel-2.6.18-120.el5dz_test2.i686 *****
***** Test Start Time: Sat Oct 25 03:02:20 EDT 2008 *****
/mnt/tests/kernel/security/audit/audit-test-2090/audit-test/audit-tools /mnt/tests/kernel/security/audit/audit-test-2090/audit-test
root:system_r:unconfined_t is not a valid context
audit-tools Failed zero Length logs: 
/mnt/tests/kernel/security/audit/audit-test-2090/audit-test
***** Test Stop Time: Sat Oct 25 03:02:20 EDT 2008 *****
***** End of runtest.sh *****
</snip>

Expected results:
This should pass

Additional info:
These tests were working as RHEL5.3-Server-20080814.nightly

Spoke with Steve Grubb:
"HP said that we had a labeling problem and for us to go review the README file."
Not sure what labeling issue we supposedly have or what README file we should read. But this has nothing to do with the audit-test or the LTP SELinux tests. I believe that is has more to do with the way these test are spawned in RHTS. But I am not specifically sure what the error means.

If I take the tests(audit-test, LTP selinux) completely out of the picture. Just using a freshly installed RHEL5-U2 systems and run the following command:
 /usr/bin/runcon root:system_r:unconfined_t -- ls
I get a directory listing:
 anaconda-ks.cfg install.log install.log.syslog ks-post.log 

If I install a system with RHEL5.3-Server-20081020.1 (AKA BETA)
and run the same command:
 /usr/bin/runcon root:system_r:unconfined_t -- ls
It fails with the following message:
 root:system_r:unconfined_t is not a valid context

Same error that is reported by the tests.