Thanks Rich - your suggestion is helping me troubleshoot - but here is where it gets stranger. That option works fine with a non-persistent CD.
But, with TC installed to my flashdisk, if I use the nodhcp option in my /mnt/sda1/boot/extlinux/extlinux.conf file, (I verified it got tickled on reboot by also taking out the quiet option) I get this:
I can STILL connect automatically to a network via dhcp even with nodhcp specified in the bootloader!
To connect via static, I have to go into the control panel's network utility and force it to use a static address and hit apply.
So it seems that merely by using the Network control panel, AND having a persistent store (backup enabled upon reboot), the system seems to be activating two instances of udhcp, or in the case of using nodhcp in the bootloader, not being recognized as nodhcp and having to force it to go to static.
Quick recap of actual incidents - this has happened on more than one install:
1) Installed TC to flashdisk or other medium.
2) I normally use dhcp on my local network. No problem. No need to even touch the network control panel.
3) Had to configure an external device via a static address. Used the network control panel to do so.
4) When finished configuring the device via a static address, I used the network control panel to put it back to dhcp to join the local network.
5) Now every reboot seems to have two instanced of udhcp running - one of which goes chatty and some long random network hangs happen every now and then from the two infighting with each other.
6) Using "nodhcp" in the bootloaders extlinux.conf file seems to confuse the system even further.
I'll try to narrow it down even further. I kind of lost track of all the variables during testing - but appreciate the help! Strange enough, this is kind of fun. On any other distro - it would be a chore.