Finally got around initrd.gz problem--thank you Flipside Tech for
posting that.  Still stopping dead every time at "Begin: Mounting root
file system..."  then dropping to BusyBox.

Info:
Ubuntu 8.04.2
older compaq with Intel Celeron 2.6GHz
768M RAM (16M shared to video)

Ubuntu 8.04 Works fine on this machine booting from hd.

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[hardy] livecd: keyword "persistent" results in busybox and (initramfs)
https://bugs.launchpad.net/bugs/219192
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