kernel (hd0,6)/boot/kernelimage root=/dev/sda7
kernel (hd0,6)/boot/kernel ro root=LABEL=/
grub> find /boot/grub/stage1
grub> find /grub/stage1
# lvm pvscan
# lvm lvscan
# fdisk -l /dev/sda
/dev/sda2 /boot ext3 defaults 1 1
title CentOS (2.6.9-34.0.2.EL)
kernel /boot/vmlinuz-2.6.9-34.0.2.EL ro root=LABEL=/
Is /boot located in sda2 or in sda7?
If sda2 is /boot, then grub.conf should contain root (hd0,1), not root (hd0,6). In grub.conf, root (hd...) refers to the location of the grub setup, not the location of the root filesystem. Also, sda2 contains a /boot folder (as per the grub find output), so mounting sda2 as /boot would not give you the desired outcome (i.e., /boot/boot/grub/...).
If sda7 is /boot, then you need to correct the fstab /boot entry.
Also, when in doubt about the LABEL= entry, change it to the device designation. You can have two partition/filesystems with the same LABEL= when you duplicate an installation using dd. Typically, the first one will be selected by/as LABEL=. For that reason, I routinely change LABEL= to the device designation.
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