Putting this in config/scripts/FAIBASE/50-mkinitrd is all I needed.
Apparently I over-complicate things
#! /bin/bash
error=0 ; trap error=$((error|1)) ERR
# create an initrd that will actually boot
TARGETVERSION=$(/bin/ls $target/lib/modules)
mkinitramfs -r $target \
-o
I am trying to make a custom fai-cd using the experimental builds.
Basically I booted a virtual machine from the gnomehost template using the ISO:
http://www.informatik.uni-koeln.de/fai/fai-cd/fai-cd-3.2.16.iso
and then updated it to 3.2.23~beta25+experimental1, and then ran fai-setup,