Since we now switch the root to the live style filesystem any files that are appended to an initrd are not accessable to the installer. This means that virt-install's inject option and the ability to add kickstart files to an initrd doesn't work. We need to copy these files over to the /sysroot using a dracut pre-pivot hook script.
This bug is also blocking the execution of the "Kickstart File Path Ks"[1] testcase. [1] https://fedoraproject.org/wiki/QA:Testcase_Kickstart_File_Path_Ks_Cfg
Discussed at 2011-10-07 blocker review meeting. Accepted as a blocker per Beta criterion "The installer must be able to use all kickstart delivery methods " (note criterion may get tweaked soon, so we may have to re-evaluate blocker status of this bug).
lorax-16.4.6-1.fc16 has been submitted as an update for Fedora 16. https://admin.fedoraproject.org/updates/lorax-16.4.6-1.fc16
lorax-16.4.6-1.fc16 has been pushed to the Fedora 16 stable repository. If problems still persist, please make note of it in this bug report.
I'm still seeing this with the initrd output from lorax-16.4.7-1 (both RC2 and a custom built initramfs) I added a ks to the initrd with cpio but the file does not exist in / once the boot process has finished. When I add rd.break=pre-pivot to the kernel args, I see the kickstart file (simple.ks) but I see no pre-pivot dracut hooks to copy the ks file to the sysimage (I'm pretty sure that /lib/dracut/hooks/pre-pivot/99anaconda-copy-ks.sh is supposed to exist).
It turns out that the root cause of the re-occurance is a bug in dracut: #750603. Since this isn't the problem, I'm re-closing the bug.
*** Bug 788141 has been marked as a duplicate of this bug. ***