System based on devtmpfs or udev with initramfs as root won't boot, because kernel doesn't automount devtmpfs on initramfs. Using initramfs requires manual mount for devtmpfs. Manual mount can be done by adding a string in the beginning of /etc/inittab: ::sysinit:/bin/mount -t devtmpfs devtmpfs /dev As a bug of buildroot it could be fixed by adding an option to mount manually devtmpfs, that makes buildroot add corresponding string to inittab automatically.
What buildroot version are you using? We have a pre-init wrapper script in buildroot since July which does exactly this. Please update to 2011.11(-rc2).