When lxnetdaemon was registered on RUN_DAEMONS on /etc/rcS.conf it hangs the system on bootup. It does not start login on command prompt but it starts the login manager but unable to reboot or shutdown unless lxnetdaemon was killed. However when lxnetdaemon run when user logged it. It works fine.
I think this case was the same as on samba when run as daemon from bootup