Sabayon LiveDVD Loop from USB - Grub kernel parameters
 

I'll give you some background first. I've used this howto from Sabayon here. My USB grub boot partition is seperate from the LiveDVD partition, and my LiveDVD partition is located on a non-primary extended partition. I have been using Sabayon LiveDVD from HDD for repairs and diags etc... I now have a 8gb flash drive that I want to use as a resource to boot multiple liveCD's for repairs. My issue's are not with Grub, or booting the device, its during the boot process. So I mounted and copied the contents from the LiveDVD into a fat32 partition on the USB drive. Then I copied my grub entries into the menu.lst in the USB grub menu.

So I restart the computer and boot from USB and enter the grub menu. I then proceed to load Sabayon Live from the USB. The kernel initializes, and loads the initrd, and then proceeds to mount partitions etc.. etc .. then as it tries to mount the squashfs I get the following error:

Here is my grub entries for the LiveDVD:

Any help with this would be appreciated. My main question is, why do these kernel parameters work when I boot of my hdd and not from the USB? Could it be that I have a seperate boot partition for grub? would a fat32 partition make a difference when using squashfs?