CD boot not finding menu.lst

[Don Bossung]

I have a server that is unable to boot from an external sata raid 
enclosure I have. So I decided to create a custom initrd and use grub to 
boot from cd.

I followed the instructions in the grub manual chapter 3.4 and have been 
successful in creating a boot cd. The problem is, after the cd boots I 
get the grub command line. From here I can use kernel=, initrd= and boot 
to boot the kernel just fine. So, what am I missing to get grub to 
automatically use the lines in menu.lst to boot the os kernel.

More detail

This is the directory/file tree under the iso directory used to build 
the iso file (where . = /tmp/iso)

.
|-- boot
|   |-- System.map-2.6.24.4-64.fc8
|   |-- config-2.6.24.4-64.fc8
|   |-- grub
|   |   |-- menu.lst
|   |   |-- splash.xpm.gz
|   |   `-- stage2_eltorito
|   |-- initrd-2.6.24.4-64.fc8-mod.img
|   |-- initrd-2.6.24.4-64.fc8.img
|   |-- lost+found
|   `-- vmlinuz-2.6.24.4-64.fc8
`-- boot.catalog

Here is menu.lst in ./boot/grub from above

timeout=10
title MythDora (2.6.24.4-64.fc8)
       kernel /boot/vmlinuz-2.6.24.4-64.fc8 ro root=/dev/MythVol/Root 
rhgb quiet
       initrd /boot/initrd-2.6.24.4-64.fc8-mod.img

This setup boots to the grub> prompt on the cd. I can then enter

kernel=/boot/vmlinuz-2.6.24.4-64.fc8
initrd=/boot/initrd-2.6.24.4-64.fc8-mod.img
boot

and the os kernel boots fine.

Any ideas?
Thanks.