Comment 8 for bug 159536

Further analysis seems to point at a xen-only problem.

I have installed Gutsy Server from the CD image on a VMware VM and installed the ppa FAI with no errors:

// ***** //

root@mpk-install3:~# fai-setup -v
Using configuration files from /etc/fai
Creating FAI nfsroot in /srv/fai/nfsroot/live/filesystem.dir.
By default it needs more than 330 MBytes disk space.
This may take a long time.
Creating base system using debootstrap version 1.0.3build1
Calling debootstrap gutsy /srv/fai/nfsroot/live/filesystem.dir http://archive.ub
untu.com/ubuntu
I: Retrieving Release
I: Retrieving Packages
I: Validating Packages
I: Resolving dependencies of required packages...
I: Resolving dependencies of base packages...
I: Checking component main on http://archive.ubuntu.com/ubuntu...
[...]
Setting up fai-client (3.2.1-0ubuntu2~ppa2~gutsy1) ...
Setting up fai-nfsroot (3.2.1-0ubuntu2~ppa2~gutsy1) ...

Processing triggers for libc6 ...
ldconfig deferred processing now taking place
Reading package lists... Done
Building dependency tree
Reading state information... Done
Reading package lists... Done
Building dependency tree
Reading state information... Done
Calculating upgrade... Done
The following packages will be upgraded:
  libssl0.9.8
1 upgraded, 0 newly installed, 0 to remove and 0 not upgraded.
Need to get 2825kB of archives.
After unpacking 0B of additional disk space will be used.
WARNING: The following packages cannot be authenticated!
  libssl0.9.8
Authentication warning overridden.
Get:1 http://security.ubuntu.com gutsy-security/main libssl0.9.8 0.9.8e-5ubuntu3
.1 [2825kB]
                            kB 1%]
29% [1 libssl0.9.8 838077/2825kB 24%]
54% [1 li
76% [1 libssl0.9.8 2157209/2825kB 68%] 174kB/s 5s
96% [1 libssl0.9.8 2734957/2825kB 96%] 174kB/s 1s
Fetched 2825kB in 10s (262kB/s)
Preconfiguring packages ...
(Reading database ... 10429 files and directories currently installed.)
Preparing to replace libssl0.9.8 0.9.8e-5ubuntu3 (using .../libssl0.9.8_0.9.8e-5
ubuntu3.1_i386.deb) ...
Unpacking replacement libssl0.9.8 ...
Setting up libssl0.9.8 (0.9.8e-5ubuntu3.1) ...

Processing triggers for libc6 ...
ldconfig deferred processing now taking place
install_packages: reading config files from directory /etc/fai
Adding additional packages to /srv/fai/nfsroot/live/filesystem.dir:
[...]
install_packages: executing chroot /srv/fai/nfsroot/live/filesystem.dir dpkg -C
install_packages: executing chroot /srv/fai/nfsroot/live/filesystem.dir apt-get clean
`/etc/fai/apt' -> `/srv/fai/nfsroot/live/filesystem.dir/etc/fai/apt'
`/etc/fai/apt/sources.list' -> `/srv/fai/nfsroot/live/filesystem.dir/etc/fai/apt/sources.list'
`/etc/fai/fai.conf' -> `/srv/fai/nfsroot/live/filesystem.dir/etc/fai/fai.conf'
`/etc/fai/make-fai-nfsroot.conf' -> `/srv/fai/nfsroot/live/filesystem.dir/etc/fai/make-fai-nfsroot.conf'
`/etc/fai/menu.lst' -> `/srv/fai/nfsroot/live/filesystem.dir/etc/fai/menu.lst'
`/etc/fai/NFSROOT' -> `/srv/fai/nfsroot/live/filesystem.dir/etc/fai/NFSROOT'
Shadow passwords are now on.
`/srv/fai/nfsroot/live/filesystem.dir/boot/vmlinuz-2.6.22-14-generic' -> `/srv/tftp/fai/vmlinuz-2.6.22-14-generic'
`/srv/fai/nfsroot/live/filesystem.dir/boot/initrd.img-2.6.22-14-generic' -> `/srv/tftp/fai/initrd.img-2.6.22-14-generic'
DHCP environment prepared. If you want to use it, you have to enable the dhcpd and the tftp-hpa daemon.
Command mkelf-linux not found. Can not set up BOOTP booting. Please install the package mknbi and rerun fai-setup.
Removing `local diversion of /sbin/discover-modprobe to /sbin/discover-modprobe.distrib'
make-fai-nfsroot finished properly.
Adding line to /etc/exports: /srv/fai/config 192.168.66.229/255.255.255.0(async,ro,no_subtree_check)
Adding line to /etc/exports: /srv/fai/nfsroot 192.168.66.229/255.255.255.0(async,ro,no_subtree_check,no_root_squash)
 * Re-exporting directories for NFS kernel daemon... [ OK ]
FAI setup finished.

// ***** //

As we know, xendomu is commonly installed using debootstrap, so we may have something missing here.

I had hoped to not have to get too far in the guts of it, but I suppose it's unavoidable now. :)