Because the 2.6 kernel uses /dev/hw_random instead of /dev/hwrandom, rng-tools claims it can't find a hardware RNG in the system. Please apply the attached patch to remedy this situation.
Created attachment 18632 [details, diff] Patch to /etc/init.d/rngd
this patch would break the 2.4 kernel users though
Thankfully not :) It checks if /dev/hw_random exists (2.6), if not, /dev/hwrandom is checked (2.4), if not, /dev/i810_rng is checked. The older two checks already existed, all I did was add one more at the top.
Is fixed now. Just re-emerge rng-tools.