I had a problem with network booting I believe may be related here.
Initially, when I booted my MD, and it went through the setup process, I had pre-maturely rebooted the MD. It was the first attempt at using a diskless MD, and I though the md had locked up because it had halfway started to setup, but then stopped at this one spot. I seriously thought the thing was locked up, so I restarted it, when it came back up, setup had only halfway constructed the filesystem for the MD so I got some pretty random results when it tried to startup into KDE, and ultimately the orbiter.
It sounds like the MD's setup was incomplete. Try deleting the device from the device catalog and re-try the MD, this time, boot it and walk away. I had to walk away from mine.