Are you sure the install has completely stopped?

If you continue to get the message, then it may just be the slow
hardware detection mentioned in the release announcement. On one of my
virtual installs it seemed to take forever, but it went through the
install despite about a million of those "kernel: not found."  messages.
I have a 12MB syslog full of them.

Try holding on for 5-10 mins or so and see if you get any other messages
on tty4.

-- 
[feisty,alternate-cd x86] kernel, not found
https://launchpad.net/bugs/79662

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