Okay... here are some more details as I seem to be stuck at this point:
Core:
dedicated computer that I also use for some basic surfing... it's installed as primarily PC but the LinuxMCE core software is running all the time.
It is AMD Athlon 64 3200+ running linuxmce core 710 i386
It is a fresh kubuntu install and than linuxmce via CDs (as I have multiple partitions on the disk, using the DVD to wipe everything doesn't seem very practical)...
I've also tried the amd64 versions but had the same problem with MDs
MD:
I have one HTPC with intel dual core and 4gb ram, nvidia 9600 gt /w1g ram connected via dvi2hdmi to full hd lcd tv
diskless setup failed
tried booting my gaming comp as a MD (c2d e8400 with 4g ram, and dual sli 9800 gtx cards) with the same result.
what i've noticed is that now that I've reinstalled the core with the i386 software, the htpc was running the diskless setup script for some 5 minutes before I got the failed msg. Previously it would pop up almost immeditelly.
Some1 please help :/