From that error it's not finding the vmlinuz. First check that everyone can read it.
Code:
chmod 444 /images/vmlinuz
The other thing to check is the pathing in your config file. Try removing the preceding / from this line
Code:
KERNEL /images/vmlinux
so it looks like this
Code:
KERNEL images/vmlinux
Pathing can be a pain when dealing with the very simple-minded PXE environment.