Let me start by thanking you for your work on this it's a great project!
I installed it earlier today from the ppa on a fresh kvm based on ubuntu 10.10 server 32bit.
After reading through the forum and re-installing again on another kvm I experience some of the same problems as others have mentioned.
First I noticed that some of the configuration files did not get created correctly.
pxelinux.0 gets created in /var/lib/xbmc-diskless/target/usr/lib/syslinux/
xbmc-netboot is created but empty.
pxelinux.cfg/default are not created at all.
So I created the needed files and edited them and got my htpc to boot, showing the xbmc logo with dots loading underneath, looking at the console I noticed it was asking for dhcp-requests which kept getting rejected over and over again. I use pfSense as router.
Then I read that you updated today probably fixing that bug so I installed git and cloned the source but couldn't figure out how to install it from source, should I just replace the files currently installed with the ones from source? move xbmc-diskless.sh to /usr/sbin and so forth?
If you are interested in suggestions for improvements it would be really nice to have a central library installed on the server and then provision clients to use that library by default.
Like this:
http://forum.xbmc.org/showthread.php?tid=80829
Update: After assigning a static DHCP-lease in pfSense to the mac-address that wants to pxeboot the DHCP NAK stopped spamming and all booted fine. I'm running the 2.beta version of pfSense. Could be useful for the others out there.
for further reference, would this be correct config to set a static ip in pxelinux.cfg/default (as long as I'm only using one client it should be ok)
ip=10.0.1.89:10.0.1.114:10.0.1.1:255.255.255.0:disklessxbmc:eth0:none