bootloader failure

[Tucker Bradford <openbsd_(_at_)_tuckerbradford_(_dot_)_com>]

I recently upgraded my server from 3.1 to 3.2. After one successful boot, every subsequent boot fails at the exact same point. I decided to downgrade back to 3.1, no change. From power up this is what I see:

BIOS Bootstraping
...
reading boot....
probing pc0 com0 apm mem[635K 254M a=20=On
disk fd0 hd0
>>OpenBSD/i386 BOOT 1.28 
|

At this point my floppy is running (light on) constantly, and the propeller is stuck on | (first position). My understanding (from reading boot-i386 man pages) is that after detecting the devices (I/O) it should drop me into the interactive prompt... but this never happens. I can't find any documentation on what is happening, and have no clue where to begin. 
I have tried fdisk -i, and /usr/mdec/boot/installboot several times. I have also installed a third party bootloader (gag) which works, but the the same thing happens once it passes control to BSD.
Any advice would be appreciated!

-=Tucker