After compiling the dgrp kernel module I needed to update the firmware of an Etherlite 32:
1. Power down the Etherlite
2. # /usr/sbin/dgipserv -erase <MAC> <IPADDR_OF_ETHERLITE>
3. Power up the Etherlite.
4. Make sure the dhcpd and tftp is not running.
5. # chkconfig dhcpd off; chkconfig tftp off
6. This was what was throwing me off - I thought I had to pre-configure additional linux bootp/tftp services which you don't. The dgipserv command serves up it's own bootp and tftp services which is convienient..
7. Power down the Etherlite
8. # /usr/sbin/dgipserv -tftp <IPADDR_OF_SERVER> -firmware /tftpboot/800007009_E.bin <MAC> <IPADDR_OF_ETHERLITE>
9. Power up the Etherlite.
10. You should have a "Firmware successfully uploaded."
11. Power down the Etherlite
12. Now we need to make the ip settings permanent.
13. # /usr/sbin/dgipserv -store -gateway <IP_GATEWAY> -netmask <IP_MASK> <MAC> <IPADDR_OF_ETHERLITE>
14. Power down and back up the Etherlite to make sure the new ip address stuck this time.
Note: I could never get rlogin to work with my etherlite, so I can't tell what the current firmware version was/is.