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So, since stuff like DISKPART works, I'd assume it's not a Storage Driver issue (though - just to be on the safe side, ideally set the HDD-controller to run in "Compatibility" or "Legacy" mode).
What happens on the client? Have you looked? How far the line do we get? Try running the command on the client, and watch - following the UI for errors can be helpful .
LANDesk EMEA Technical Lead
It has been my experience with OSD that the two most common failures are either the drive or image is not accessible. To troubleshoot I would remove the line that fails, rerun the script, then open a command prompt in WinPE on the target and verify that you can access C: and your image.