Kernel panic can happen for a number of reasons. Some generally because of hardware.
How old is your pc?
Try disabeling SELinux-(if it's that)
If your not suspicious of the HDD or cables on their way out, try another distribution other than Puppy.
-::-Generally Puppy is ran Live-::-
Run Memtest overnight to make sure the RAM isn't bad.
When I had the kernel panic error that you had I found out that my HDD had bad sectors on it and had to purchase another HDD.
Check the health of the HDD-