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+++ This bug was initially created as a clone of Bug #599159 +++ http://docs.fedoraproject.org/en-US/Fedora/13/html-single/Installation_Guide/ has a duplicate and slightly conflicting/confusing description of /sysroot/ handling in "F.2.2. The Boot Loader" and "F.2.3. The Kernel". I assume that /sysroot/ population should be described in one of the sections - not both. Boot_Init_Shutdown.xml
Removing myself for these bug components as I'm either no longer involved in that aspect of the project, or no longer care to watch this particular bug. Sorry if you are caught in a maelstrom of bug changes as a result!
This bug is now fixed and available as part of the Red Hat Enterprise Linux 6.3 release on http://docs.redhat.com/. Setting to CLOSED > CURRENTRELEASE.