Found the answer to the problem. I was using Notepad in Windows to create the KS.CFG file. I ended up using Notepad++ to change the End Of Line formatting to Unix.
To do this:
1. Download and install Notepad++ from here: http://notepad-plus-plus.org/download
2. Open (or create) your KS.CFG file in Notepad++
3. Once you have your file configured, click Edit then EOL Conversion then select UNIX/OSX Format
4. Save your file and boot the host
Hopefully this helps others.
