Init not working properly busybox 1.12.1

[Vivek Kumar Gupta]

Hi All,
I am using GCC 4.3.2, uClibc0.9.30 for ARM 922t based board.
I have take busybox 1.12.1 .

I am getting this error
VFS: Mounted root (nfs filesystem).
Freeing init memory: 112K
Kernel panic - not syncing: Attempted to kill init!

Actually I am not able to understand where the problem is.

So upon searching I found, 
http://www.busybox.net/FAQ.html#init
how to test this hello world example.
first I enabled the build Options-> BusyBox as a static binary,
then I have compiled the c code and made changes to kernel parameter
init=/helloworld
and checked the booting, the "hello world" is not printing.
I am not sure if this is the right way, 

Now my question is
1. Why is init not working?
2. Earlier I have used /linuxrc, which is softlink to /bin/busybox, so
how to check if this is build correctly.
3. how to run helloworld example.


Thanks in advance.

Regards
Vivek