LiveCD will not boot anymore (invalid loop location)

[Durque]

Greetings

A Gentoo LiveCD 2006.0 has booted 20+ times at least. And suddenly now stops in the
boot processs after issueing:

"Determing looptype
Invide loop location:/image.squashfs
Please export loop with a valid location or reboot and pass a proper loop=...
Kernel command line"

And ends in a /bin/ash-shell.

The same CD in another PC boots successfully. Which of course is annoying to
say the least. In the forums I've found
https://forums.gentoo.org/viewtopic-t-438556.html
and
https://forums.gentoo.org/viewtopic-p-3532566.html#3532566

However to no avail for me. I can't mount image.squashfs. There is no such file
anywhere to be found.

So, How can I help the LiveCD to complete the boot process. What's missing?

Regards,
Runar

BTW:
# df -h
udev is mounted on /dev
tmpfs is mounted on /newroot
/dev/hda1 is mounted on /newroot/mnt/cdrom