I have released a new Fiasco snapshot (0.5.1, dated 981207) which has integrated all patches which have been posted to this mailing list. New snapshots of the support stuff also have been uploaded, including a new grub-ext2fs-floppy.gz (which doesn't any longer contain a confusing menu.lst file, and which is capable of loading gzip'd files and uncompressing them on the fly).
I have changed the directory naming scheme in the tar files: They now all unpack into a directory called "l4", and not any longer "l4-<date>". This should make it easier to update only a part of the whole distribution in the future.
Michael