I just ran into this same problem my self. The problem seem to be
caused by having an older diskless system where the old way of doing
things was to compile a big fat kernel with all the modules you needed
to boot and to run the system compiled in and running without an
initrd.img. If you do that, when the interface goes to try and get an
IP (for the second time) it looses any access it had to it's network
mounted root directory and therefore can't mount anything and freezes.
The fix would seem to be to change your kernel to a stock one along with
loading its initrd.img so that you still have access to a mount command
if you loose your IP. (I makes kernel upgrades easier too)
Brian
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