I'm hitting install - not ondemand.
I'm also using microcore, if that's of any significance.
"Are you possibly running aout of loop devices?"
I have no idea - I don't know what they are.
Each running extension consumes 1 loop device. By default, limit on loop devices is 96 (Running off memory here - could be wrong). At some point, you'll want to add max_loop=255 to your list of boot codes.
"If you are using version 2.9 it should be correct."
I wasn't aware that this was out - I can't find it under downloads. Is this the same as microcore-current.iso? Did you mean 2.8 (which is what I am using)?
Not final release, but there are numerous release candidates. I'm running 2.9rc4 right now, and it's just as stable (for me) as 2.8.
"If you change it to tc:staff it will work"
How do I do this?
sudo chown -R tc:staff /mnt/sda1/tc
(assuming TC is installed on sda1)