Apparently the Fedora updates system has pushed Cobbler packages out of order.
https://fedorahosted.org/bodhi/ticket/260#preview
So, as I submitted 1.2.8 as an important fix on top of 1.2.7, 1.2.7 is still in there.
If you are using Fedora, be sure to install 1.2.8 from http://people.fedoraproject.org/~mdehaan/files/cobbler/
rpmbuild --rebuild *.src.rpm rpm -Uvh /usr/src/redhat/...
1.2.7 is the version that didn't read the settings file, which is something we obviously don't want happening.
I'll see if I can get the Fedora updates sorted out in the meantime.
--Michael
cobbler@lists.fedorahosted.org