No filesystem could mount root, tried:  iso9660
Kernel panic - not syncing: VFS: Unable to mount root fs on unknown-block(1,0)

dd if=/dev/zero of=new-rootfs.img bs=1M count=512
mkfs.ext4 -F -j new-rootfs.img
<mounted and copied os from template host with rsync to /mnt>
gzip -c new-rootfs.img | dd of=new-rootfs.gz

KERNEL vmlinuz0
    APPEND initrd=/images/centos-diskless/rootfs.gz root=/dev/ram0 init=/init noapic acpi=off devfs=nomount raid=noautodetect ramdisk_size=1048576 rw ip=dhcp