I didn't try other nic on workstation, but I did try same nic on other PI motherboard and voila everything started to work! now client boots all the way.

the motherboard (that had problems with halting at swap exporting) was a SiS based Pentium S. It had problems installing some distributions (suse 8.2, RH 7.3 kernel panic at boot), but some distros installed w/o problem (suse 9.0, redhat 7.0).

I apologize for all the trouble, seems like working with old hardware is the source of many so called "software" problems.



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