Correct. You will want to assign the drive letter after the image has been restored to the target machine. This will assign the C: volume and allow the process to continue.
So.... i need to assign the C: letter to partition 2 times??
Before and after deploying the image?
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You do not need to assign the drive before the image is restored. The LANDesk image utility uses a sector level restore. You should be able to remove the mount action before the the image deploy action is run and have a single mount action after the image is restored. If the image contains a vendor partition, make sure that you are assigning the correct partition number, but based on your comments, it appears that partition 1 contains the location of the OS image.