install fails for debian-testing-i386-lxde.iso (grub loopback & cdrom)

[Beeblebrox <zaphod@berentweb.com>]

The debian-testing-i386-lxde-CD-1.iso fails to install. (june 30 download).

Boot media & Target platforms:
#1. CD-ROM > {Toshiba Tecra 8200 with Pentium CPU, 256 RAM}
Boots, but install options fail without warning {edd=off} does not help.

#2. Grub2 loopback iso on HDD > {Toshiba Tecra}
Boots, but fails to load CD-ROM (Detect and Mount CD-ROM). As I understand,
kernel module loop must be loaded, then iso must be mounted from rescue
shell?

#3. Grub2 loopback iso from PXE + tftp +http > {Toshiba Tecra} & {amd64 /
1GB thinclient}
Boots, but fails to load CD-ROM (same as above)

I have also tried this with grub/trunk compiled from source. grub.cfg entry
for #2 is
menuentry "Debian Jesse-i386-lxde" --class gnu-linux --class gnu --class os
{
  set isofile="/grub_boot/debian-testing-i386-lxde-CD-1.iso"
  search --set=root --file $isofile
  loopback loop (hd0,gpt6)$isofile
  set root=(loop)
  linux (loop)/install.386/vmlinuz
  initrd (loop)/install.386/initrd.gz
## syslinux function is from grub_trunk. Tested & failed.
#  syslinux_configfile -i (loop)/isolinux/isolinux.cfg -r (loop)
  }

P.S. I don't want to use the netboot.iso because this will download the
needed packages from the internet. I plan several repeat installs where not
all systems have adequate internet connection. 
Also, don't have a system where I can setup apt-cache.

Discussion about Debian-PXE booting on the grub-devel mail list:
http://lists.gnu.org/archive/html/grub-devel/2014-07/msg00018.html

Regards.



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