We believe that your issue has been closed by the upload of
Version 0.8.28 of grml-autoconfig from Michael Prokop <mika@grml.org>.
The explanation is attached below

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Format: 1.8
Date: Thu, 10 Sep 2009 01:01:04 +0200
Source: grml-autoconfig
Binary: grml-autoconfig
Architecture: source all
Version: 0.8.28
Distribution: unstable
Urgency: low
Maintainer: Michael Prokop <mika@grml.org>
Changed-By: Michael Prokop <mika@grml.org>
Description: 
 grml-autoconfig - main bootup process of a grml system
Changes: 
 grml-autoconfig (0.8.28) unstable; urgency=low
 .
   [ Michael Prokop ]
   * DCSDIR default value is /live/image. If no GRMLCONFIG device
     is found and no myconfig option is given, DCSDIR is empty. It should
     be /live/image. Thanks to Ulrich Dangel for the bugreport, thanks
     to Marc Haber for the fix. [Closes: issue730]
 .
   [ Ulrich Dangel]
   * Add unit tests for {get,check}bootparam.
   * Fix a bug in getbootparam() (requesting unavailable argument
     returned wrong bootoption instead of empty value).
 .
   [ Frank Terbeck ]
   * doc/Makefile: fix non posix shell syntax.
   * Integrate Ulrich's unit tests into the Debian package.
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Checksums-Sha256: 
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Files: 
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On Wed, Sep 09, 2009 at 10:34:56AM +0000, Ulrich Dangel wrote:
> New submission from Ulrich Dangel <schula@grml.org>:
> 
> if there is no GRMLCFG partition and no myconfig entry is specified
> config_finddcsdir does not set DCSDIR to the root of the livecd (/live/image).
> This should be done to unpack config.tbz from the root of the livecd.

Maybe the attached patch helps.

Greetings
Marc

-- 
-----------------------------------------------------------------------------
Marc Haber         | "I don't trust Computers. They | Mailadresse im Header
Mannheim, Germany  |  lose things."    Winona Ryder | Fon: *49 621 72739834
Nordisch by Nature |  How to make an American Quilt | Fax: *49 3221 2323190

if there is no GRMLCFG partition and no myconfig entry is specified
config_finddcsdir does not set DCSDIR to the root of the livecd (/live/image).
This should be done to unpack config.tbz from the root of the livecd.