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Unable to launch UCS PE (v1.1.1)

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Hi,
 
I'm running the emulator in Vmware Fusion 2.x on Mac OSX. When launching the VM, got the following messages at the console:
 
switchroot: mount failed: No such file or directory
Kernel panic - not syncing: Attempted to kill init!
 
And it hangs there non-stop. Any clue?
 
- JT -