According to the log it starts and fails on this line:
"ZA002-LAP-129","ERR_Fail",-2147481753,0:00:02,2010/03/19 02:25:10 PM,2010/03/19 02:25:12 PM,"diskpart /s X:\LDClient\rmvol.txt"
This line runs diskpart and scripts all the commands in the rmvol.txt file.
So open Diskpart and manually enter each line from the rmvol.txt into it and see what happens. One of them will fail. Once you know which one is failing, the reason may become obvious and if not, post the line from rmvol.txt that is failing and maybe the issue has been seen by someone before.
Seeing the same error code for an Australia customer today. His WinPE image is missing .0 file. Will try manually run every command in rmvol.txt manually on Monday.
i dont know why but sometimes the primary disk comes up as Disk 1 instead of Disk 0. You will need to modify the script to include Disk 0 and 1 to cover that. I think i saw the CDROM or something else that is readonly coming up as Disk 0.