I used anaconda 126.96.36.199 to attempt a hdiso install from an external USB drive.
The partition is labeled ISOS, so the boot line was:
where that directory contains 6 CD images and updates.img.
anaconda.log shows no signs of checking that directory for updates.img, and the
updates do not appear to have been loaded.
The only updates line in anaconda.log says:
INFO : Looking for updates in /mnt/stage2/images/updates.img
Where is your stage2 image located?
/some/dir/i386/cd/updates.img - although that's actually a symlink to /some/dir/i386/iso/updates.img.
Err, duh. Sorry, you said stage2.img. I'm booting from a boot.iso. so it's on /dev/sr1. I've also tried pulling the CD after kernel/initrd load, so it gets the stage2 from the isos themselves.
Right, it's looking for the updates.img in the same location as the install.img, NOT the same location as the repo. Since you've got the install.img on the boot.iso, the repo= parameter won't even be processed until we're in anaconda proper - way too late to pull down and apply any updates.
In this case you need to have the updates.img embedded in the boot.iso where you see it looking, or pass a stage2= parameter instead of using boot.iso, or use updates= to point to a remote location.