Comment 4 for bug 696435

...and yet another workaround, which doesn't hardcode "squashfs", is to put a local-top/nbd_ltsp script with the following contents:

#!/bin/sh

# Work around LP bug #696435
if [ "$ROOT" = /dev/nbd0 ] && [ -z "$FSTYPE" ]; then
    FSTYPE=$(blkid -s TYPE -o value "${ROOT}")
    if [ -n "$FSTYPE" ]; then
        echo "FSTYPE='$FSTYPE'" > /conf/param.conf
    fi
fi

Wouter, would you consider adding that to the local-top/nbd script instead?