dracut: FATAL: initial SELinux policy load failed

Here's an obnoxious install failure: Using the RHEL/Scientific Linux 6.3 DVD, it is possible for an install to crash on first boot with an SELinux error.  The problem is a bug in the post of the target policy RPM.  The bug is immediately fixed by running yum update... assuming you can figure out how to get the machine booted.  Luckily, the error is nice enough to tell you how move forward.

Reboot, and at the GRUB menu, append "selinux=0" to boot into Permissive mode.  From the root prompt:

ls /etc/selinux/targeted/policy/policy.24
ls: cannot access /etc/selinux/targeted/policy/policy.24:
No such file or directory

If possible, issue: yum update selinux-policy-*

If the machine is not network connected, the problem can be resolved by restoring the file policy.24 from install media.  And it it were that simple, you wouldn't need me.  You will have to force install two RPMs:

rpm -ivh --force selinux-policy-3.7.19-*
rpm -ivh --force selinux-policy-targeted-3.7.19-*

The second force install will take several minutes to complete.

Regardless of how the issue is resolved, it is best to relabel the filesystem:

touch /.autorelabel