Pungi needs to run on the arch it is composing, as root, and with an install of what it is composing, eg if you are composing Fedora 8, you need to be running Fedora 8.
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This is so that the correct userland tools are used to create the images and such used by anaconda.
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The eventual usage of pungi will most likely be in mock chroots to facilitate this.
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It needs to run on the arch it is composing due to how anaconda-runtime determines what files to put in the boot images at this time.
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Currently the releases of pungi are designed to run on an updated Rawhide system. Development of pungi always tracks Rawhide.