I've seen this problem in several cases in Lucid alphas, and it was mostly due
to KMS or plymouth, i.e. not LTSP related... can you try with the new beta 2
image?
Also, does it still happen if you replace "quiet splash" with "nomodeset" in
/var/lib/tftpboot/ltsp/amd64/pxelinux.cfg/default?
** Changed in: ltsp (Ubuntu)
Status: New => Incomplete
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ltsp not starting on 10.04
https://bugs.launchpad.net/bugs/536949
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