I have recently installed a 64bit Karmic server, upgraded all packages
to be up to date, and installed LTSP. I configured a i386 LTSP client to
be booted via PXE and I have this exact issue booting Intel dual-core
atom clients.

Sometimes they boot, sometimes they stall at the screen in the original
bug report, and sometimes they stay at that screen for a little while
and then continue to "Starting LTSP server"

Any insight would be appreciated.

-- 
ltsp doesn't boot due to mount errors in initrd
https://bugs.launchpad.net/bugs/435228
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