Ok, this is very odd. Turns out the problem was I enter the MAK key into the Task Sequence, and recreating the Task Sequence without the MAK key fixed the issue. This is obviously not driver related as the smsts.log file lead me to believe.
Any idea why the MAK key would cause problems like this??
If I can't create a task sequence with a MAK, then what's the point of asking for it??
Or is this just because it is a Build and Capture TS??