I have been having problems with preinit v4. Whenever I use v4, after the preinit scripts are run, I get an infinite loop of stack dumps coming from Hijack. I don't have the stack dumps handy right now, unfortunately, but I can obtain one if it will help. Rolling back to v3 of preinit makes things happy.

The scripts I have are the following:

N00mountall - mounts my drives
N05telnetd - starts up telnetd
N10launcher - starts up launcher

I've tried moving any and all of these scripts out of the preinit.d directory so that preinit doesn't call any of them, thinking they might be the problem... No difference. It seems when preinit v4 passes control to init, I get an unrecoverable crash, and have to reapply an old pre-preinit hijack kernel (v159 or so) to reinstall preinit v3.

Bitt, any idea what might be causing this?

Nope. Can you get your hands on one of the stack dumps? It might help.