Hi,
this is caused by /selinux not being mounted. This dir can only be
mounted if the kernel has selinux enabled already.
There is a bootstrapping issue with selinux right now: if you enable it
without having a policy, sysvinit will panic.
I'm not sure about the best way to handle it. A week ago I would have
suggested to default to 19, but 2.6.14 was now uploaded to unstable
which should have policy version 20... I don't know a way to detect the
selinux version of a kernel which is not running with selinux=1

best regards,
Erich Schubert
-- 
    erich@(vitavonni.de|debian.org)    --    GPG Key ID: 4B3A135C    (o_
  A polar bear is a rectangular bear after a coordinate transform.   //\
          Die Stärke eines Menschen kann man daran messen,           V_/_
              wie er mit seinen Schwächen fertig wird!


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