I'm encountering the same issue with a Broadcom network card using the
tg3 driver. Just as reported above, the installation onto iscsi worked
without issue, but the iscsi boot process in the initrd seems to go into
a loop doing network configuration.

In my case, I also have encrypted swap configured and after looping for
some time, they system attempts to drop me into busybox and prompts me
for the password, but then hangs after attempting mountall.

Another thing to note is that I have /boot and / on a local USB disk and
am using iscsi for /usr, /var, and /opt only.

-- 
10.04 beta1 iSCSI-on-root fails on boot
https://bugs.launchpad.net/bugs/546964
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