Why does the kernel panic after updating to the RHEL 5.9 (kernel-2.6.18-348.el5) as a Microsoft Virtual Server 2005 guest.

Issue

• After updating Red Hat Enterprise Linux 5.8 to Red Hat Enterprise Linux 5.9, kernel panic with following error messages on console.

insmod: error inserting '/lib/scsi_mod.ko' : -1 Operation not permitted
insmod: error inserting '/lib/sd_mod.ko' : -1 Operation not permitted
insmod: error inserting '/lib/libata.ko' : -1 Operation not permitted
insmod: error inserting '/lib/ata_piix.ko' : -1 Operation not permitted
insmod: error inserting '/lib/dm-mod.ko' : -1 Operation not permitted
insmod: error inserting '/lib/dm-log.ko' : -1 Operation not permitted
insmod: error inserting '/lib/dm-mirror.ko' : -1 Operation not permitted
insmod: error inserting '/lib/dm-zero.ko' : -1 Operation not permitted
insmod: error inserting '/lib/dm-snapshot.ko' : -1 Operation not permitted
insmod: error inserting '/lib/mem-cache.ko' : -1 Operation not permitted
insmod: error inserting '/lib/dm-region_hash.ko' : -1 Operation not permitted
insmod: error inserting '/lib/dm-message.ko' : -1 Operation not permitted
insmod: error inserting '/lib/dm-raid45.ko' : -1 Operation not permitted
stabilized: open /proc/scsi/scsi: No such file or directory
  Reading all physical volumes.  This may take a while...
  No volume groups found
  Volume group "VolGroup00" not found
Unable to access resume device (/dev/VolGroup00/LogVol01)
mount: could not find filesystem '/dev/root'
setuproot: moving /dev failed: No such file or directory
setuproot: error mounting /proc: No such file or directory
setuproot: error mounting /sys: No such file or directory
switchroot: mount failed: No such file or directory

Kernel panic - not syncing: Attempted to kill init!

• Boots fine in Red Hat Enterprise Linux 5.8 kernel.