[FC3] kernel panic after selinux-policy-targeted update

["D. D. Brierton" <darren dzr-web com>]

I ran sudo yum update today and selinux-policy-targeted was updated 
(along with another selinux related package whose name I can't remember) 
and immediately my system became unresponsive and I had to do a hard reboot.

Now I cannot boot into FC3 at all (I'm posting this from Windows). This 
is the error I get:

audit(1119882959.657:0): avc: denied { execmod } for pid=1 comm=init 
path=/lib/tls/libc-2.3.5.so dev=hda3 ino=2638668 
scontext=user_u:system_r:unconfined_t tcontext=system_u:object_r:shlib_t 
tclass=file
/sbin/init: error while loading shared libraries : /lib/tls/libc.so.6: 
cannot apply additional memory protection after relocation: Permission 
denied
Kernel panic - not syncing: Attempted to kill init!

Any suggestions on what to do?

I know I can boot with selinux=0. After that, what? Attempt to reinstall 
selinux?

Help!

TIA, Darren