Ethernet doesn't work with ubuntu lucid - beableboard xM


I have switched to ubuntu lucid from Angstrom. Ethernet works well
with the Angstrom but doesn't work with lucid

ADDRCONF (NETDEV_UP): usb0: link is not ready

I did check for the g_ether driver, it's a built-in kernel module,
not a separate and loaded properly.
log about g_ether
g_ether gadget: using random self ethernet address
g_ether gadget: using random host ethernet address
g_ether gadget: Ethernet Gadget, version Memorial Day 2008
g_ether gadget: g_ether ready
g_ether gadget: high speed config #1 : CDC Ethernet (EEM)

uname -a:
Linux beagleboard #1 PREEMPT Tue Apr 13 04:25:20 UTC
2010 armv7l GNU/Linux

I have tried using the USB OTG but doesn't work. Followed the link to
setup the same
- no luck

Even ethernet LED is not blinking.

So anybody help to resolve the same.

This was fixed 6 months ago, that kernel is too old and had the wrong
configuration.. Upgrade to the latest stable..

such as:

Then follow:

PS, where'd you get that demo image? I'll delete it from my servers
so no one else runs into that old issue..