Autoyast=default

If I want to use autoyast=default option to specify the .xml, and am booting off the SLED ISO file on another partition, where does autoyast go look for the autoinst.xml?
THe root of the .ISO ? That doesnt seem to work.

It says reading file on
/var/mnt/adm//autoyast.xml failed
/autoyast.xml failed