I am running Ubuntu 12.04 LTS. I found from further searching that I needed to have a 64bit kernel for 1.0.1. Thought that was referring to the OS that I was imaging. At the time most were 32bit so that was what I tried using. I got it to work with the newest 64bit kernel.
To get the machines to PXE boot I needed to change my DHCP 67 from pxelinux.0 to undionly.kpxe so it could use iPXE.
The next thing I found I had to do was go into all my images from the web interface and choose the right OS again and hit update. This fixed the Kernel panic - not syncing : vfs: unable to mount root fs on unkown-block(1.0).
The other issue I discovered is the reports are not working. If I try to get a inventory report the window just goes blank, I just hit the back button to get back to the list of reports again. I had to change the Web Server settings. I left FOG_WEB_ROOT at /fog/ setting. I had to change FOG_REPORTS_DIR from ./reports/ to management/reports/ to get it to work.