In baselayout-1.11.3 the ._cfg0000_net.eth0 is really the net.lo file, and vice versa. Also, the ._cfg0000_net.lo includes a "# vim:ts=4" at the end. These files should be swapped!
net.eth0 should be a symlink to net.lo fix your local box as such
Oh, ok. Sorry about that then. Just seemed very confusing. Have to take a look at my initscripts...