Great help once again - I downloaded and built the latest mainline kernel, and I can use nfsroot properly, with auth_sys only on the export. Looks like it is indeed working properly in newer kernels.
In case anyone else comes across this, I was using red hat enterprise 5.3's latest kernel (2.6.18.128.....), and that was not working. Now working properly with 2.6.31.1, not sure the exact version it was fixed. -- This message posted from opensolaris.org