kernel.panic not working

In my sysctl.conf, I have the line kernel.panic=1, which is supposed to make the system automatically reboot 1 second after experiencing a kernel panic. Well, it just experienced a kernel panic, and it said 'Rebooting in 1 seconds..', but it didn't actually reboot. What am I doing wrong, and how can I fix it?

I'm running Ubuntu 10.04 with 2.6.32.16-linode2. Here's the full log of the kernel panic:

BUG: unable to handle kernel NULL pointer dereference at (null)
IP: [<c052e3ca>] tcp_xmit_retransmit_queue+0x4a/0x270
*pdpt = 0000000022a5b027 *pde = 0000000000000000 
Oops: 0000 [#1] SMP 
last sysfs file: /sys/kernel/uevent_seqnum
Modules linked in:

Pid: 16622, comm: python Not tainted (2.6.32.16-linode28 #1) 
EIP: 0061:[<c052e3ca>] EFLAGS: 00210246 CPU: 0
EIP is at tcp_xmit_retransmit_queue+0x4a/0x270
EAX: f9a054c7 EBX: e64291c0 ECX: 00000000 EDX: e642923c
ESI: 00000000 EDI: 0000150e EBP: 00000000 ESP: e3795c80
 DS: 007b ES: 007b FS: 00d8 GS: 0033 SS: 0069
Process python (pid: 16622, ti=e3794000 task=ec4ef720 task.ti=e3794000)
Stack:
 e642923c 00000002 ecc202c0 f9a054c7 00000000 e64291c0 0000150e 00000000
<0> c05294be eccb82c0 c0782620 c01351e6 c055a917 e7de36a0 00000000 00000500
<0> df576f00 00000000 00000000 00000000 01640000 f9a024f7 76c359bc f9a054c7
Call Trace:
 [<c05294be>] ? tcp_ack+0x16ce/0x1ee0
 [<c01351e6>] ? local_bh_enable+0x16/0x90
 [<c055a917>] ? ipt_do_table+0x277/0x5c0
 [<c052ae1a>] ? tcp_rcv_state_process+0x6a/0xb40
 [<c05318ff>] ? tcp_v4_do_rcv+0x8f/0x1f0
 [<c05156b0>] ? ip_local_deliver_finish+0x0/0x1f0
 [<c01351e6>] ? local_bh_enable+0x16/0x90
 [<c05320d9>] ? tcp_v4_rcv+0x679/0x750
 [<c051574f>] ? ip_local_deliver_finish+0x9f/0x1f0
 [<c05156b0>] ? ip_local_deliver_finish+0x0/0x1f0
 [<c05151e3>] ? ip_rcv_finish+0x153/0x350
 [<c0515090>] ? ip_rcv_finish+0x0/0x350
 [<c04c5f77>] ? netif_receive_skb+0x307/0x4d0
 [<c046e270>] ? xennet_poll+0x620/0xce0
 [<c0105357>] ? xen_force_evtchn_callback+0x17/0x30
 [<c04c67c7>] ? net_rx_action+0xa7/0x140
 [<c0134f13>] ? __do_softirq+0x93/0x120
 [<c05fb31e>] ? _spin_unlock_irqrestore+0x1e/0x30
 [<c0105357>] ? xen_force_evtchn_callback+0x17/0x30
 [<c0134fdd>] ? do_softirq+0x3d/0x40
 [<c0135125>] ? irq_exit+0x55/0x70
 [<c0436900>] ? xen_evtchn_do_upcall+0x120/0x170
 [<c0108907>] ? xen_do_upcall+0x7/0xc
Code: 8b b3 88 03 00 00 85 f6 0f 84 1b 02 00 00 8b 93 ec 03 00 00 8b 46 3c 89 54 24 0c 8d 53 7c 39 44 24 0c 89 14 24 78 04 89 44 24 0c <8b> 06 0f 18 00 90 39 34 24 74 75 39 b3 24 01 00 00 8d 4e 20 0f 
EIP: [<c052e3ca>] tcp_xmit_retransmit_queue+0x4a/0x270 SS:ESP 0069:e3795c80
CR2: 0000000000000000
---[ end trace cd4b8f9b474c603a ]---
Kernel panic - not syncing: Fatal exception in interrupt
Pid: 16622, comm: python Tainted: G      D    2.6.32.16-linode28 #1
Call Trace:
 [<c05f898d>] ? panic+0x42/0xf2
 [<c010b45a>] ? oops_end+0x8a/0xa0
 [<c011b08a>] ? no_context+0xba/0x190
 [<c011b1d5>] ? __bad_area_nosemaphore+0x75/0x190
 [<c01351e6>] ? local_bh_enable+0x16/0x90
 [<c04c7073>] ? dev_queue_xmit+0xf3/0x500
 [<c051a747>] ? ip_finish_output+0x1e7/0x2a0
 [<c05197e5>] ? ip_local_out+0x15/0x20
 [<c0519fa6>] ? ip_queue_xmit+0x1a6/0x3a0
 [<c05fb2e5>] ? _spin_lock+0x5/0x10
 [<c011b4da>] ? do_page_fault+0x6a/0x330
 [<c055a917>] ? ipt_do_table+0x277/0x5c0
 [<c011b470>] ? do_page_fault+0x0/0x330
 [<c011b2ff>] ? bad_area_nosemaphore+0xf/0x20
 [<c05fb58e>] ? error_code+0x66/0x6c
 [<c011b470>] ? do_page_fault+0x0/0x330
 [<c052e3ca>] ? tcp_xmit_retransmit_queue+0x4a/0x270
 [<c05294be>] ? tcp_ack+0x16ce/0x1ee0
 [<c01351e6>] ? local_bh_enable+0x16/0x90
 [<c055a917>] ? ipt_do_table+0x277/0x5c0
 [<c052ae1a>] ? tcp_rcv_state_process+0x6a/0xb40
 [<c05318ff>] ? tcp_v4_do_rcv+0x8f/0x1f0
 [<c05156b0>] ? ip_local_deliver_finish+0x0/0x1f0
 [<c01351e6>] ? local_bh_enable+0x16/0x90
 [<c05320d9>] ? tcp_v4_rcv+0x679/0x750
 [<c051574f>] ? ip_local_deliver_finish+0x9f/0x1f0
 [<c05156b0>] ? ip_local_deliver_finish+0x0/0x1f0
 [<c05151e3>] ? ip_rcv_finish+0x153/0x350
 [<c0515090>] ? ip_rcv_finish+0x0/0x350
 [<c04c5f77>] ? netif_receive_skb+0x307/0x4d0
 [<c046e270>] ? xennet_poll+0x620/0xce0
 [<c0105357>] ? xen_force_evtchn_callback+0x17/0x30
 [<c04c67c7>] ? net_rx_action+0xa7/0x140
 [<c0134f13>] ? __do_softirq+0x93/0x120
 [<c05fb31e>] ? _spin_unlock_irqrestore+0x1e/0x30
 [<c0105357>] ? xen_force_evtchn_callback+0x17/0x30
 [<c0134fdd>] ? do_softirq+0x3d/0x40
 [<c0135125>] ? irq_exit+0x55/0x70
 [<c0436900>] ? xen_evtchn_do_upcall+0x120/0x170
 [<c0108907>] ? xen_do_upcall+0x7/0xc
Rebooting in 1 seconds..</c0108907></c0436900></c0135125></c0134fdd></c0105357></c05fb31e></c0134f13></c04c67c7></c0105357></c046e270></c04c5f77></c0515090></c05151e3></c05156b0></c051574f></c05320d9></c01351e6></c05156b0></c05318ff></c052ae1a></c055a917></c01351e6></c05294be></c052e3ca></c011b470></c05fb58e></c011b2ff></c011b470></c055a917></c011b4da></c05fb2e5></c0519fa6></c05197e5></c051a747></c04c7073></c01351e6></c011b1d5></c011b08a></c010b45a></c05f898d></c052e3ca></c0108907></c0436900></c0135125></c0134fdd></c0105357></c05fb31e></c0134f13></c04c67c7></c0105357></c046e270></c04c5f77></c0515090></c05151e3></c05156b0></c051574f></c05320d9></c01351e6></c05156b0></c05318ff></c052ae1a></c055a917></c01351e6></c05294be></c052e3ca></c052e3ca>