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Rebooting your Linode would not make any changes within your server. Unfortunately, as an unmanaged provider, we wouldn't be intimately familiar with the internal configuration of your Linode, however it appears that "init" is not being found as your disk image is not being mounted correctly. Have you possibly customized your Linode to use XFS as opposed to ext3?

When using Finnix, your Linode's file-system can be found at "/dev/xvda" as per the "Rescue" tab of the Linode Manager. You may want to consider performing a file-system check using "fsck -fy" against your disk image from within Finnix:

http://library.linode.com/troubleshooting/finnix-rescue-mode

Unfortunately, there's no indication of any issues on our end and the problems that you're experiencing appear to be the result of an issue internal to your Linode. If you're unable to identify the cause, your best option may be to re-deploy by backing up any important data from Finnix and creating a new Linode.

Alternatively, you could attempt to resize your existing disk image(s) to a smaller size, deploy a new installation alongside your existing disk images, adjust your configuration profile to attach your old disk images, boot in to the new installation, and copy any important data to the new disk images. You would then want to power your Linode down again, delete the old installation once you've retrieved any important data, and resize the new disk images to take advantage of all available storage.

I apologize for any inconvenience, but please do not hesitate to let us know if we can be of any further assistance.

Regards,
Eric