Initially when I started using Linode I wanted to jump right into using an LVM root, but then I realized that I had a little to learn first. So instead I decided that I should just figure out how to boot my own custom kernel.
I started with Linode source
http://www.linode.com/src, built it, and boot it. All worked well. So I decided to try my own kernel sources/configs. I have a much better understanding of how Linode's Xen configuration is working, but there are still a few missing pieces.
From looking at your boot-log, I'd guess that it cannot find your root, because it cannot read from your LVM. I haven't got much further than that myself, but I'm pretty certain that we probably need to make use of an initrd file.
If I make any headway, I'll let you know.