2.6.XX kernel for encrypted root

Hi everybody in list!

I was trying to recompile kernel for setting up root encryption - after 
copying ubuntu kernel config. and setting some kernel options following 
loop-AES readme (you can see them at the end of this mail), it ended up 
with kernel panic.
{ Kernel panic - not syncing: VFS: Unable to mount root fs on 
unknown-block(0,0) }
What could be wrong?

"All kernel subsystems needed by root file system (IDE drivers,
ext2/ext3/reiserfs/whatever) must be compiled directly into kernel."
- which kernel parameters make this real? How to find them?

CONFIG_MODULES=y
CONFIG_BLK_DEV_LOOP=n
CONFIG_KMOD=y

CONFIG_BLK_DEV_RAM=y
CONFIG_BLK_DEV_RAM_SIZE=4096
CONFIG_BLK_DEV_INITRD=y
CONFIG_MINIX_FS=y
CONFIG_PROC_FS=y
CONFIG_CRAMFS=n
CONFIG_SCSI=y
CONFIG_BLK_DEV_SD=y
CONFIG_USB=y
CONFIG_USB_STORAGE=y
CONFIG_FAT_FS=y
CONFIG_MSDOS_FS=y
CONFIG_VFAT_FS=y

CONFIG_USB_UHCI_HCD=y
CONFIG_USB_OHCI_HCD=y
CONFIG_USB_EHCI_HCD=y

CONFIG_NLS_CODEPAGE_437=y
CONFIG_NLS_CODEPAGE_850=y
CONFIG_NLS_ISO8859_1=y
CONFIG_NLS_ISO8859_15=y
CONFIG_FAT_DEFAULT_CODEPAGE=850
CONFIG_FAT_DEFAULT_IOCHARSET=iso8859-15

-
Linux-crypto:  cryptography in and on the Linux system
Archive:       http://mail.nl.linux.org/linux-crypto/