Can you try to session in to the module using "service-module sm 1/0 session" IOS command ? normally you should see a bootloader prompt. from bootloader prompt can you ping to your tftp server and verify the connectivity?

if its ok, can you do the installation again and post the log from the service module side? to do that issue the IOS installation command from IOS and session in to the module using above session in cmd. (to toggle between those to prompt use ctrl+shift+6 and x)

Thanks Manuka.

Here is the process. Having another error.

*Dec 2 01:13:30.151: %SM_INSTALL-6-INST_RESET: SM1/0 is reset for software installation.
Router#ser
Router#service-module sm1/0 sess
Router#service-module sm1/0 session
Application install/uninstall/upgrade in progress.
Sessioning in and entering commands could interfere with
the process and leave the module in an undefined state

Do you want to proceed with session? : yes
Trying 10.0.20.1, 2067 ... Open


DDR Memory 4096 MB detected
Intel(R) Core(TM)2 Solo CPU L3400 @ 1.86GHz
BIOS SM 3.52.8, BIOS Build date: 02/08/2011
System now booting...


Please wait...

Please press P to select Primary Boot Loader ...
or S to select Secondary Boot Loader ...
or wait to boot from default configuration ...

.......................................................................................................
SRE module get located and run....

Now booting from secondary boot loader....


Authenticating boot loader....


Secondary Boot Loader authenticated - booting....



Please enter '***' to change boot configuration:

Detect and Initialize network device


Backup current platform configurations....

SRE step 1 - SM registration...
Finding (hd1,3)/296e03bc-3236-4a68-a178-688e56400a1e, failed
Local install not supported

SRE step 2 - SM requests key file info...

*Dec 2 01:15:13.675: %SM_INSTALL-6-INST_RBIP: SM1/0 received msg: RBIP Registration Request
*Dec 2 01:15:13.679: %SM_INSTALL-6-INST_RBIP: SM1/0 received msg: RBIP File Request
SRE step 3 - SM stores registration info...
SRE configuration keeps the same. No flash update needed!

SRE step 4 - SM downloads key-file...
Writing keyfile to flash Size 916
writing complete.

Updating flash with bootloader configuration.
Please wait ................... done.

SRE step 5 - SM requests installer info...

*Dec 2 01:15:21.775: %SM_INSTALL-6-INST_RBIP: SM1/0 received msg: RBIP File Request
SRE step 6 - SM stores installer info...

Updating flash with bootloader configuration.
Please wait ................... done.

SRE step 7 - SM now downloads installer
done.

SRE step 8 - SM requests tcl header file info...

*Dec 2 01:15:35.407: %SM_INSTALL-6-INST_RBIP: SM1/0 received msg: RBIP File Request
SRE step 9 - SM now downloads the tcl header file
TCL header file downloaded completely size: 698

SRE step 10 - SM requests tcl file info...

*Dec 2 01:15:41.927: %SM_INSTALL-6-INST_RBIP: SM1/0 received msg: RBIP File Request
SRE step 11 - SM now downloads the tcl file
TCL file downloaded completely size: 6016

SRE step 12 - SM now boots Installer
Verifying ... done.
Starting Kernel.

Platform: sm
INIT: version 2.86 booting
mounting proc fs ...
mounting sys fs ...
mounting /dev/shm tmpfs ...
kernel.sem = 1900 4000 32 100
vm.overcommit_memory = 1


Welcome to Cisco Service Engine

Setting the system time from hardware clock

********** rc.aesop ****************
Populating resource values from /etc/sm_rsrc_file
Populating resource values from /etc/default_rsrc_file
Populating resource values from /usr/etc/products/galactica/default_rsrc_file
Populating resource values from /usr/etc/products/galactica/sm_rsrc_file
==> Management interface is eth0
==> Management interface is eth0
IOS IP Address Registration complete.


*Dec 2 01:16:14.263: %SRE_SM-6-STATE_CHANGE: SM1/0 changing state from SERVICE_MODULE_STATE_ERRQ to SERVICE_MODULE_STATE_STDYKernel IP routing table
Destination Gateway Genmask Flags MSS Window irtt Iface
10.0.20.0 * 255.255.255.0 U 0 0 0 eth0
10.0.30.0 * 255.255.255.0 U 0 0 0 eth1
default 10.0.20.1 0.0.0.0 UG 0 0 0 eth0
Loading AHCI driver for SM-SRE-700-K9
INIT: Entering runlevel: 2
********** rc.post_install ****************

Changing owners and file permissions.
Change owners and permissions complete.
INIT: Switching to runlevel: 4
INIT: Sending processes the TERM signal
STARTED: dwnldr_startup.sh
sre_type= 1
Welcome to Cisco Systems Service Engine Helper Software
userinput=

Downloading ftp sre-v-k9.SPA.smv.1.5.1.pkg

SM1/0 is reset due to
Can not download sre-v-k9.SPA.smv.1.5.1.pkg
error code 0 : error type 'couldn't connect to host'.

Error: Download error
Can not download sre-v-k9.SPA.smv.1.5.1.pkg
error code 0 : error type 'couldn't connect to host'
Unable to install. Please try agai
*Dec 2 01:16:58.839: %SM_INSTALL-6-INST_FAIL: SM1/0 is reset due to
Can not download sre-v-k9.SPA.smv.1.5.1.pkg
error code 0 : error type 'couldn't connect to host'.
*Dec 2 01:16:58.839: %SRE_SM-6-STATE_CHANGE: SM1/0 changing state from SERVICE_MODULE_STATE_STDY to SERVICE_MODULE_STATE_ERRQ

Hi Brett,

Thanks. This is the confiiguration.

interface Embedded-Service-Engine0/0
no ip address
shutdown
!
interface GigabitEthernet0/0
ip address 10.10.0.20 255.255.255.0
duplex auto
speed auto

!
interface SM1/0
ip address 10.0.20.1 255.255.255.0
service-module fail-open
service-module ip address 10.0.20.2 255.255.255.0
service-module ip default-gateway 10.0.20.1
service-module mgf ip address 10.0.30.2 255.255.255.0
!
interface SM1/1
description Internal switch interface connected to Service Module
switchport mode trunk
no ip address
!
interface Vlan1
ip address 10.0.30.1 255.255.255.0

Wei
What was your solution?