Index: etc/rc.initdiskless
===================================================================
--- etc/rc.initdiskless
+++ etc/rc.initdiskless
@@ -350,25 +350,26 @@
 # from being copied.
 
 for i in ${templates} ; do
-    for j in /conf/$i/* ; do
-	subdir=${j##*/}
+    template_root="/conf/$i/"
+    for j in `find ${template_root}/* -type d 2>/dev/null` ; do
+	subdir=${j#$template_root}
 	if [ -d $j -a ! -f $j.cpio.gz  ]; then
 	    create_md $subdir
 	    cp -Rp $j/ /$subdir
 	fi
     done
-    for j in /conf/$i/*.cpio.gz ; do
+    for j in `find $template_root -name '*.cpio.gz' 2>/dev/null` ; do
 	subdir=${j%*.cpio.gz}
-	subdir=${subdir##*/}
+	subdir=${subdir#$template_root}
 	if [ -f $j ]; then
 	    create_md $subdir
 	    echo "Loading /$subdir from cpio archive $j"
 	    (cd / ; /rescue/tar -xpf $j)
 	fi
     done
-    for j in /conf/$i/*.remove ; do
+    for j in `find $template_root -name '*.remove' 2> /dev/null` ; do
 	subdir=${j%*.remove}
-	subdir=${subdir##*/}
+	subdir=${subdir#$template_root}
 	if [ -f $j ]; then
 	    # doubly sure it is a memory disk before rm -rf'ing
 	    create_md $subdir