The mount point can be a device, a directory or a file -
It can not be a symbolic link.
Sorry, it didn't occur to me to ask you to check for that condition.
I just assumed that the up-start script was changing the rw/ro status of /etc before it generated the config file.
That, and the lack of proper messages from the busybox version of the 'mount' command made this a lot more difficult than it has to be.
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{rant}
Why didn't Lab126 re-configure X11 to get its configure file from /var/local/etc/x11.conf to begin with?
After all, they are doing a custom build-from-source for every firmware release.
{/rant}
Hmm...
that is a rhetorical question, there may be a very good reason that escapes me at the moment.