I also submitted this problem as a bug to e-smith technical support and received the response that it is an issue of the kernel used during installation, and would be fixed in the upcoming 4.1 release.
I have come up with a solution, although it is unelegant and requires the use of DOS and the Norton Ghost disk duplication program. I'm know this can be done in linux, but I am not a linux expert (that is why I am using e-smith

)
To get around the e-smith 4.0 kernel problem with hard drives >32GB:
1. do a normal install to a drive smaller than 32GB, I used an extremely OLD 1GB drive.
2. after the install completes, replace your CD-ROM drive (probably on the second IDE controller) with your large IDE drive.
3. boot with a DOS/WIN bootable floppy and run Norton Ghost.
4. do a drive to drive duplication. There are 3 partitions to copy. The first is the small /boot partition to keep linux in the first 1024 cylinders of the HD. The second is the linux swap partition and the third is the / root, the rest of the drive. Keep the size of the first two partitions the same, and allow Ghost to resize the third partition to use the rest of the drive.
5. after the duplication completes, remove the small HD and move the large HD to the primary IDE controller, boot the machine and begin the normal configuration of the e-smith server.
It has worked for me, so let me know if this helps you.
David Phillips
dphillip@rose.net