I did boot the USB on system which works and I edited the inittab to boot single user mode. Then I tried it on the system in question and this did not resolve the issue. However, I will still try doing this during the boot process and use init 3 instead of single user. It can't hurt ;)
Regarding unetbootin and liveCD allow me to provide some clarification. I am using the livecd-creator program ( which can be installed with yum) to create the ISO file. Then I use Fedora Live USB Creator tool for Windows to burn the ISO file to USB.
This process creates a USB which works on 5 of 6 pf my computer systems model. I can try the Fedora Live USB Creator for Linux to burn the ISO file to USB.
Regarding SELinux, the reason I downloaded the Live image from Fedora was to see if it exhibited the same issue. If it did (and it does) then to me that says I did not induce this issue during the process of creating the ISO file.
So I will do the following
Try the Fedora Live USB Creator for Linux to burn the ISO file to USB.
Use yum to see if there was an update the the livecd-creator program that I use to create the image.