Re: Problem with booting newly compiled kernel

       linux   /vmlinuz-2.6.37-rc6+ root=UUID=01432597-18e7-4609-9f85-3fad1d762ddc ro iommu=1

Try replacing root=UUID=01432597-18e7-4609-9f85-3fad1d762ddc by the simpler root=/dev/sdaX. I had similar problems some time ago - for some reason, my kernel did not like UUIDs. Alex.