it seems like a catch-22 to me. I boot xen0 with nfsroot,
 and then try to setup bridge stuff. something like this
/sbin/brctl addbr xen-br0
/sbin/brctl addif xen-br0 eth0
/sbin/ifconfig xen-br0 10.0.10.103 netmask 255.255.255.0 up
/sbin/ifconfig eth0 0.0.0.0 promisc up
 however, once I start it running it crashes down with error
 that nfs server is not available.
 does it mean that I must use initramfs to configure bridge
 first, or is there some other way?

it seems that it is actually possible to configure bridge over nfsroot,
but one needs to re-arrange lines slightl. As it is below it works for me
/sbin/brctl addbr xen-br0
/sbin/ifconfig xen-br0 $HOSTNAME netmask 255.255.255.0 up
/sbin/brctl addif xen-br0 eth0
/sbin/ifconfig eth0 0.0.0.0 promisc up
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