OSD installation on SCCM 2007 SP2 fails

[Byron Boudreaux]

We had the same problem and what wound up causing it was that the roll back does not completely remove everything on a failed install. The roll back left the the folder it tries to mount the WinPE image in. So when we tried to perform subsequent installs, it would fail on that step because it will not mount an image to a folder that is not empty. Once we deleted the folder and ran the install again, it recreated the folder and completed the install just fine.

[Arthur Alva]

I have faced this very same problem of the HP OSD kit performing a roll back action during installation. My current setup is Windows 2008 R2 with WAIK 2.0. I have tried the solutions mentioned on this page, but unfortunately nothing seemed to work on this Win 2008 R2 setup.
As a workaround I installed the same OSD Kit exe on a Win 2003 Server, with WAIK 1.1. The installtion took about 20 minutes & completed successfully. I backed up the source files of the HP OSD kit created under Software Distribution, Boot Images, Drivers & Drive Packages in the win 2003 server & later used the same source to create the same directory structure in the win 2008 r2 server hosting the SCCM 2007 Console. Admin console can be installed on the win 2008 server without any problems.