Glad that WEP is working, I'm hoping to test WPA soon, just have to get hostapd setup properly.
And yes for real I have my WebDT booting as an MD. It is not true 'diskless' in the sense that it is not REALLY PXE booting. I have a kernel with an initrd on the WebDT that loads the wireless drivers and then mounts the NFS share and proceeds as if it had PXE booted. Right now I am manually creating an MD in the webadmin and then pointing my kernel to mount the NFS share of that new MD and boot like a normal diskless MD from that point on. I am working on having it use the PXE boot information to automatically find the proper NFS share and, hopefully, to make it somewhat generic to be used as a method of performing a Wireless PXE boot. I will also admit that I have turned off some of the 'features' that exist on most MDs that I would not enable on my WebDT (mythbackend, for example, is disabled on my WebDT).
As for a howto... well that's easier said than done but I hope to wrap up what I've done into a wiki page, at some point, and provide the additions/alterations to the initramfs for the PXE style booting. Still lots of testing, lots of learning too. I knew next to nothing about PXE boot, initrd's and the kernel boot process when I started this 2 weeks ago. I'm having an issue right now where the firmware for the ipw2200 is not found during the normal module loading portion of the initramfs (even though I've placed the firmware into the initramfs), if I later rmmod and insmod the driver again then it finds the firmware no problem.