i tried your step now and it worked.i could disable selinux after the f16 install.
Too bad that i use infinality repo packages for font rendering, smoothing which doesnt work in f16,yet.
so ...ugly fonts,overall.
i changed the selinux config file and disabled selinux, but someone in forums suggested to edit grub file too,but its grub2 in f16.it looked so complicated and i didnt touch grub.cfg in grub2 folder.glad it worked without editing the grub2 kernel paramaters.
thanks for the tip