Ver 4.01 booting to kernel panics

Hi All,

Not sure if this list is still being watched or not, will try my luck 
anyhow.

First time at using bootcdwrite, I am attempting to build a custom image 
- primarily for the recovery of VM's

The install is Lbuntu 13.10 (64bit) + Workstation 10 (all unnecessary 
packages removed, eg: games)

Chose Lbuntu as it is light and has small footprint.  The ISO 
uncompressed is 3.2GB

Using bootcdwrite to create an ISO image of the customised hard disk, 
however upon booting the ISO, it starts to boot then freezes at:

"Begin: Running /scripts/init-bottom ... mount: mounting /dev on 
/root/dev failed: No such file or directory
done.
/init: line 352: can't open /root/dev/console: no such file
[38.128858] Kernel panic - not syncing: Attempted to kill init! exit 
code=0x00000200"

Have tried update-initramfs then re-running bootcdwrite, no change

Any ideas to try ?

Regards
Mark