Hallo,
it's not a kernel problem.
When installing the newer initramfs-tools from official lenny fai repo
(http://www.informatik.uni-koeln.de/fai/download/lenny/,
initramfs-tools_0.93.4-grml02_all.deb)
pxe boots fine with virtio-net guests
(both with plain lenny 2.6.26... and backported 2.6.32 from squeeze).
Possibly you want to assign this bug initramfs-tools.
Cheers
Holger Fischer
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