After more digging thru the process of running KDE Desktop on the media director, it seems the culprit is finally found. Please check it out.
VDR setup is getting better and better, and people should now be able to install and the only manual thing still needed at this point in time, is the creation/selection of the channels.conf. Read the wiki about that.
At the moment the archive for the diskless media directors is distributed in a bzip'd tar. We might change that later. Therefore the extraction scripts have been made agnostic to the compression method used.
Enjoy your week!
Peer Oliver Schmidt
for LinuxMCE 0810