LinuxQuestions.org - VMWare Converter Standalone Debian Squeeze Gives Kernel Panic

I am converting a Debian Squeeze physical server to a VM using the VMWare VCenter Stand Alone Client. All appears to go well. The system moves over fine without errors, but upon boot, I get:

*Mounting /dev/sda8 on /sysroot
mount: mounting /dev/sda8 on /sysroot failed: No such device
mknod: /sysroot/dev/console: No such file or directory
mknod: /sysroot/dev/null: No such file or directory
mknod: /sysroot/dev/zero: No such file or directory
* Switching / to /sysroot
switch_root: bad newroot /sysroot
[2.767345] Kernel panic - not syncing: Attempted to kill init!

1) I am using ext3 NOT lvm.
2) The converter completes 100% without errors
3) I have tried changing the iscsi controller type.
4) I have tried rebuilding grub.
5) I can boot from a rescue disk and everything is there. /dev/sda8 exists and should be /sysroot.
6) The fstab is correct.

This worked flawlessly with my CentOS 5 and 6 machines. I'm not a Debian person, so I'm a bit lost here. I am also far from an expert on GRUB.

I think this system is using GRUB2, but not 100% sure on that. I've exhausted all the KB articles on VMWare. I know it's something the vmware converter changed, but can't figure out what or how to fix it.