After upgrading to Maverick (from Karmic) and re-creating the LTSP chroot from the Maverick repositories, I was surprised to see that the image file was almost the same size as the chroot directory (
/opt/ltsp/i386) itself.

As it turns out (from the changelog of the
ltsp source package), some people experienced problems with compressed chroot images and the decision was made to disable image compression by default.
From the changelog:
ltsp (5.2.1-0ubuntu3) lucid; urgency=low
* Turn off chroot compression by default. As it makes NBD unstable.
-- Stéphane Graber <stgraber@ubuntu.com> Wed, 24 Mar 2010 08:21:55 -0400
However you can still enable image compression on your LTSP server in
/etc/ltsp/ltsp-update-image.conf. Simply remove the
-noF -noD -noI options from the
NO_COMP variable.
Comments
LTSP chroot compression can be re-enabled
nbd-proxy. Thus the solution is not to disable NBD compression, but to disable the proxy. Just edit theBOOTPROMPT_OPTSline in the/etc/ltsp/update-kernels.conffile of your LTSP chroot, rebuild the chroot initramfs (update-initramfs -u) and update the kernels used by PXE (ltsp-update-kernels).