If you’re running FOG 0.32,
The kernel likely “panicked” which would explain the “kernel error” you were seeing. Since 1.0.0 I’ve been building a 64 bit AND a 32 bit kernel. When you downloaded your new kernel, which architecture did you download? My guess is you downloaded the 64 bit kernel and this is where things went south for you.
Also, you state the file “could not be found & the kernel error” This sounds exactly like the information I just told you. The 64bit kernel cannot find a 64 bit init.gz file. It’s because of this you see the “could not be found” AND the reason why you have the kernel error.
If you download the bzImage32 file as your bzImage, things should work more properly for you.