Usually when I screw my box up pretty badly I do:
mv /etc/selinux/targeted /etc/selinux/bak
yum reinstall selinux-policy-targeted
On F16 this might be working, as I do get files in /etc/selinux/targeted but I also get this error message:
touch: cannot touch `/etc/selinux/targeted/.rebuild': No such file or directory
Fixed in selinux-policy-3.10.0-20.fc16
selinux-policy-3.10.0-21.fc16 has been submitted as an update for Fedora 16.
* should fix your issue,
* was pushed to the Fedora 16 testing repository,
* should be available at your local mirror within two days.
Update it with:
# su -c 'yum update --enablerepo=updates-testing selinux-policy-3.10.0-21.fc16'
as soon as you are able to.
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selinux-policy-3.10.0-21.fc16 has been pushed to the Fedora 16 stable repository. If problems still persist, please make note of it in this bug report.