I just tested on a vm with 1.31, the other vm that is on the LAN side, during pxe boot tries to download the file as specified by nextserver and boot file in m0n0wall. I didn't setup the tftp server or rest, as I believe you don't get this far.
Are you sure that the pxe client is getting it's dhcp info from m0n0wall , do you see it in the lease table ?
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