The issue is, you haven't compiled ramdisk support into your kernel. I don't know if it is faster or more efficient to use the ramdisk/initrd support or no ramdisk/initrd and just boot the entire compiled kernel. I know for most purposes, it is best to compile into the kernel for things you use EVERY boot. For example if your root filesystem is EXT3, then compile it into the kernel. If you only mount EXT3 occasionally, then compile it as a module to conserve memory when your not using it.
Good luck booting!