Instead of 8 loop devices, you'll now have 64 using the following line:
# vi /etc/modprobe.conf
options loop max_loop=64
kernel panic - not syncing: Attempted to kill init!
It's simple. At grub screen, press "a" to change kernel parameters and add "enforcing=0". Next, you can add this to /etc/grub.conf to do this automatically.
This happened after enforcing SElinux on both CentOS5 and RHEL6.1.
[update] It all happened after changing SELINUXTYPE in /etc/sysconfig/selinux to "strict" on CentOS and "mls" in RHEL. The problem is that selinux-policy-strict was missing on CentOS, and so was selinux-policy-mls in RHEL. You'll have to install them first before modifying /etc/sysconfing/selinux. After that, reboot once with "enforcing=0 autorelabel" and after that a reboot with no other parameter, and should be ok.