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Are you sure its PXE? I think DHCPDISCOVER is just the VM trying to get an IP AFTER the OS has loaded it could be booting from DISK not from the network.

This correlation can be done by looking @ the Instance console and grep-ing the logs at the same time.

You can chose an instance with static IP address if you wish,, but that Image will not be reusable as it will cause IP Address conflict within the tenant.