I got a panic: Kernel panic - not syncing: No init found. Try passing init= option to kernel.
I don't know what to do with the init= option at all. My config XML is attached. If it helps, my computer has 512MB ram, PAE disabled, DEP disabled NoExecute disabled and the driver for colinux running.
CONFIG for my colinux setup
Logged In: YES
user_id=579204
Originator: NO
Kerle says you: It can not find the programm "/bin/init" in your block device.
Double ckeck, that the device file c:\coLinux\Debian-3.0r2.ext3-mit-backports.1gb is properly unpacked with bunzip2.exe
Some badly tools unpacks the file wrong (my WinZip for example).
Try this tool: http://www.henrynestler.com/colinux/tools/bzip2-102-x86-win32.zip
Check first the file with "bunzip.exe -tv Debian-3.0r2.ext3-mit-backports.1gb.bz2", before unpacking it.
Check the free disk space for 1GB, before you unpacks it.
Check the file size after unpacking, it should be exactly 1GB.
Your config file sems be ok.
Sometimes initrd is a problem. You can remove or comment out the initrd.gz for boot.