I hope it doesn't.  I use it quite frequently at work.  It's jsut so much
easier to use than installing a bootloader onto a floppy, mounting, copying
the kernel and so forth.
I did this patch which works for me, but only if root=/dev/nfs  It was done
against 2.4.13 or something around there, but it applies with offset to all
newer 2.4 kernels and I believe all 2.5 kernels.
--- net/ipv4/ipconfig-orig.c	2001-11-19 20:48:35.000000000 -0500
+++ net/ipv4/ipconfig.c	2001-11-19 20:56:21.000000000 -0500
@@ -1105,7 +1105,11 @@
 	proc_net_create("pnp", 0, pnp_get_info);
 #endif /* CONFIG_PROC_FS */
 
-	if (!ic_enable)
+	if (!ic_enable
+#if defined(IPCONFIG_DYNAMIC) && defined(CONFIG_ROOT_NFS)
+	    && ROOT_DEV != MKDEV(UNNAMED_MAJOR, 255)
+#endif
+	   )
 		return 0;
 
 	DBG(("IP-Config: Entered.\n"));
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