After it fails, but while still in WinPE go to X:\LDClient and see if there are a bunch of 0 byte files listed in there.
Lemme know the results of that.
Also you should be able to find HIIClient.log in either X:\LDClient or X:\Windows\System32. That might give some insight.
Before you had suggested this I decided to shave down the files in the drivers location. Once I took out unecessary files that were being downloaded everything went through smoothly.
Thanks for your support. Now that I got the path cleared out it's time for fine tuning.