Hi
I figured out what this is. It would seem that there was a change sometime in SME 8 with regard to whether or not the IPv6 modules get loaded. In the 8b7 installs I have done, they don't. If they aren't present then tftp will fail with the messages you show above. This seems to be an oversight or perhaps a bug in the tftp-server code for 0.49-2. Whatever the reason, it doesn't work. You can fix it by removing a couple of lines from /etc/modprobe.conf. Either comment them out or delete them.
alias ipv6 off
options ipv6 disable=1
reboot
alternatively (thanks compsos) you can add the switch --ipv4 to the tftp start in tftpd
daemon /usr/sbin/in.tftpd -l --ipv4 -v -v -p -s /tftpboot
With either of these changes, tftp will behave itself and do what it does best. Of course, this "fix" may break something else that I'm unaware of so YMMV
Best
S