Another update here. I made headway on this today. I figured out how to get past the error that I was getting and to have the vm kickstart successfully. The problem ended up being caused by boot options in the grub menu. So for example our grub menu would come up, I could either select enter to boot or tab to see the boot command. Our boot command looked like this:
RHEL-6.2/vmlinuz initrd=RHEL-6.2/initrd.img ks=http://<ip of ks server>/profile/kick1.ks ksdevice=bootif noipv6 console=tty0 console=ttyS0,9600 BOOTIF=<mac address of guest vm interface>
However, when the vm guest would boot it would get all the way to the point that I have described above and give me the error 'segfault at 0 ip'. The solution that I found today, was to remove any reference to an interface in the boot command. So at the grub menu I would change the command to this:
RHEL-6.2/vmlinuz initrd=RHEL-6.2/initrd.img ks=http://<ip of ks server>/profile/kick1.ks
The vm guest booted right up, completed the kickstart and is up and running. There were a couple of hiccups that I still need to iron out, like the install still asked for the language setting. I also have to make sure the disk creation in the .ks file matched with how much disk space I was giving the vm in the software. For instance we were creating 4 partitions of 10gb and more each and the vm harddrive settings was set as 8gb which caused some errors. Fixing that resolved the problem though.
Anyway, just wanted to give everyone an update and document this in case anyone else runs into it. I am still unsure why I cannot specify the interface in the boot command. I also don't know if I needed to remove all the options that I did or just the ones pertaining to the interface. I'll have to do some more testing to find out. BTW, I did end up just using the initrd.img and vmlinuz files off the RHEL iso/dvd. No changes at all to those files like I was previously messing with.