FATAL: Don't know how to handle 'root=live

Hi Everyone,

I am attempting to boot from USB using syslinux/isolinux with a
squashfs image as my root filesystem.

My kernel command line like looks like:
linux /LiveOS/vmlinuz.x86_64 root=live:CDLABEL=Physix-Project rd.live.image
APPEND initrd=/LiveOS/initramfs-img.x86_64

At boot, the system halts soon after the following message.
dracut: FATAL: Don't know how to handle 'root=live:Physix-Project

I got the impression from dracut docs that I needed dmsquash-live and 
livenet module included in the initramfs, but when I define them in my 
/etc/dracut.conf and run make install on the kernel tree I get the 
following messages:
`dracut: dracut module 'livenet' depends on 'dmsquash-live', which can't 
be installed
dracut: dracut module 'dmsquash-live' cannot be found or installed.`

Question 1: Will including these 2 modules solve the "FATAL: Don't know 
how to handle 'root=...." issue?

Question 2: If so, how do I get these modules installed (on 
Debian/Fedora) so I can build the initramfs?

best regards,
Tree