If you just have: url --url http://foo then pungi fails with: yum.Errors.GroupsError: No Groups Available in any repository without the usual: Pungi.Gather:INFO: Adding repo ks-method-url Basically, the problem is that repo.methodToRepo() fails unless there is a "repo" command in the kickstart as well as the "method" command. Patch here: https://www.redhat.com/archives/kickstart-list/2008-April/msg00046.html
This will be fixed in the next build of pykickstart. Thanks for the patch.