Nothing like solving my own problem!
However, because I believe in open source and helping out when possible I will post my findings.
INIT stands for inittab. "s0" is the device that is having problems or causing problems. In this case "s0" is Serial Port 0.
My problem was that I activated the serial port for accessing the appliance however the system I installed doesn't have a serial port. Now one would say why would I have activated such a function, knowing I don't have the port. Well I was hoping to connect up a usb to serial adapter to do this but realize that this would be worth it. There would probably be problems with drivers or unsupported.
I reinstalled the system without serial support and the system runs great!