You would still need to make the boot.img on the stick as above. The kickstart file goes into a subdirectory kickstart under the doc root to host the Kickstart config files. In my case I used my web server. Boot with the usb stick and enter "linux ks=http://<yourhostname or ip>/kickstart/ks.cfg"
There is an excellent tutorial on creating your kickstart file at http://www.linuxdevcenter.com/pub/a/...rt.html?page=2
if you don't already have one.
EDIT: Please note the instructions above include an unneccesary component to config a kickstart file using a gui and you are far better off learning and editing kickstarts from a text editor(gui or not).