troubles with fai 3.4 and lucid

[Russell Poyner]

I'm attempting to setup fai to install ubuntu lucid and get an error I 
don't understand.

Setup:
Install server ubuntu 10.04, fai 3.4 from the ppa repository
I've edited the config in /etc/fai and run fai-chboot -IFv hostname.

When I net-boot the host (a vmware vm) it boots the pxelinux kernel and 
mounts the NFS root, but then gives:
Warning: dummy start-stop daemon called doing nothing

It then drops me to a login prompt.

I've had OK luck with FAI before, but this is a new one.

TIA