When booting with an initramfs made with this dracut version, I get a loop where it says it's reached basic target and then repeats. 

A bunch of debugging with rd.debug and rd.break showed me that it was failing in the pivot root. It seemed it couldn't mount /dev and /sys mounts over to /sysroot or pivot to the sysroot. For dev and sys it was saying device was busy. 

Going back to dracut-022-99.git20120730.fc18 things work as expected. 

I do have an encrypted / here if that factors into it.