This may be old news but since I couldn't find while googling I figured I'd mention it just in case.
First time out of the gate ltsp hung on when trying to load syslogd. On your host/server you have to run syslogd with the -r option to allow remote machines to log locally.
Or remove -R {SYSLOG_HOST} from rc.local.
My 2 cents, Kurt Neufeld
ps-how can you view/edit /linuxrc?
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