Boot USB - No Network Connection

[kgoerbig]

I connect a powered USB hub to my PI, and run all storage devices, and IR devices off the powered hub.

Well, I used xbian-copy to copy over to a partition on my external terabyte harddrive, and it booted great, however same issue ... no network connection. All lights lit up on the Ethernet adapter.

Went into xbian-config (Gui) and all was set to dhcp. Tried to change it to static and input values (192.168.1.14, 255.255.255.0, & 192.168.1.1), and gave me a network connection error.

Powered off the PI, pulled the SD card, and on my ubuntu box renamed cmdline.txt.bak to cmdline.txt from the ubuntu filemanager, and this time it booted up without error from the sdcard. It boots fine from both usb and sdcard, but I have no network connection via usb boot. As soon as I switched back to the original cmdline.txt and booted from sdcard, the network connection is fine. I'm stumped.

Modified cmdline.txt to boot from usb hdd:
http://pastebin.com/raw.php?i=83MXKWBC

confiig.txt
http://pastebin.com/raw.php?i=KjG8k56D

Also, as a sidenote, when install Xbian RC2 I do an apt-get update & upgrade -y. Would this have any effect on the USB copy process?