Using multiple repo designations in the kickstart file works to satisfy the dependant anaconda-runtime required to build the Live media when using a mounted F12 DVD ISO file locally. It only needed to fetch a few packages from the network using the kickstart file provided with the livecd-tools package.
repo --name=local --baseurl=file:///mnt/iso repo --name=network --baseurl= http://mirrors.kernel.org/fedora/releases/12/Everything/i386/os/
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