Alternate ISO fails to install: Cannot find kernel image

Using Lubuntu 12.04:
Customizing: lubuntu-12.04-alternate-i386.iso

I was successful in creating an alternate iso using this:
sudo uck-remaster-unpack-iso /???/lubuntu-12.04-alternate-i386.iso
sudo uck-remaster-prepare-alternate ~/tmp

Then I added 2 .deb packages to ~/tmp/remaster-iso/pool/extras
Added the following line at the bottom of ~/tmp/remaster-iso/preseed/lubuntu.seed:
d-i pkgsel/include string secure-delete mypackage

When I finalized with this (no GPG key):
sudo uck-remaster-finalize-alternate ~/tmp
sudo uck-remaster-pack-iso my.iso
it installed lubuntu correctly but failed to install the added packages: secure-delete & mypackage

When I finalized with a GPG key:
sudo uck-remaster-finalize-alternate XXXXXX ~/tmp
sudo uck-remaster-pack-iso my.iso
it fails at the Install Base System step stating that it cannot find a kernel image

Attached.