I just had this exact issue this week when doing a clean install of 1.5.4, the install went fantastic, but when I went out to a lab and did a group deployment I came back the next day to find the computers boot looping due to FOG timing out. I traced it down to a PHP issue, but ultimately ended up downgrading to 1.4.4 with no issues anymore.
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RE: FOG server crashing on group deployment