Ok - so we have faulty/legacy PXE implementation in some onboard NICs, that don't support "next-server"... Here is how to fix... VERY cool! It basically replaces the faulty PXE with a modern gPXE.
Following these instructions.. build undionly.kpxe and place in local /tftpboot/
http://etherboot.org/wiki/pxechaining
Then do something like the following in dhcpd.conf:
group {
allow booting;
option root-path "192.168.202.4:/opt/ltsp/i386";
host ws042 {
hardware ethernet 00:06:29:DF:2C:52;
fixed-address ws042.dainty.ca;
option host-name "ws042";
if substring (option vendor-class-identifier, 0, 9) = "PXEClient" {
if exists user-class and option user-class = "gPXE" {
next-server 192.168.202.4;
filename "/ltsp/i386/pxelinux.0"; #secondary PXEclient
} else {
filename "/tftpboot/undionly.kpxe"; #first boot.. loads gPXE
}
} else {
next-server 192.168.202.4;
filename "/ltsp/i386/nbi.img"; #normal boot image
}
}
}