I followed the instructions in the original post on a fresh LinkStation Live (fw v2.10, telnet enabled).
mtdaapd quits shortly after startup with the following output to /var/log/mt-daapd.log:
2008-01-21 20:39:32 (4001d4a0): Firefly Version svn-1586: Starting with debuglevel 2
2008-01-21 20:39:32 (4001d4a0): Plugin loaded: ssc-script/svn-1586
2008-01-21 20:39:32 (4001d4a0): Plugin loaded: rsp/svn-1586
2008-01-21 20:39:32 (4001d4a0): Plugin loaded: daap/svn-1586
2008-01-21 20:39:32 (4001d4a0): Starting rendezvous daemon
2008-01-21 20:39:32 (4001d4a0): Starting signal handler
2008-01-21 20:39:32 (4001d4a0): Initializing database
2008-01-21 20:39:32 (4001d4a0): Full reload...
2008-01-21 20:39:32 (4001d4a0): Starting web server from /usr/local/share/mt-daapd/admin-root on port 3689
2008-01-21 20:39:32 (4001d4a0): Registering rendezvous names
2008-01-21 20:39:32 (4001d4a0): Serving 0 songs. Startup complete in 0 seconds
2008-01-21 20:39:32 (4001d4a0): Rescanning database
2008-01-21 20:40:26 (4001d4a0): Rendezvous socket closed (daap server crashed?) Aborting.
2008-01-21 20:40:26: AbortingAny suggestion on how to troubleshoot this?