I have tested this on beta2 and beta3. What I am finding is that my kickstart location ends up as 127.0.0.1...
DEFAULT menu PROMPT 0 MENU TITLE pxe menu TIMEOUT 50 TOTALTIMEOUT 6000 ONTIMEOUT local
LABEL local MENU LABEL (local) MENU DEFAULT LOCALBOOT -1
LABEL register_sles11p2-i586 kernel /images/sles11p2/linux MENU LABEL sles11p2-i586 append initrd=/images/sles11p2/initrd ksdevice=bootif lang= textmode=1 install= http://repo1.chicken.dev/artifactory/sles-11p2-base/i586/ text autoyast= http://127.0.0.1/cblr/svc/op/ks/profile/sles11p2-i586 ipappend 2
My next server and server options are set correctly. Has anyone else seen this?