Yes, I did a Capture Boot Media too. That seems to be the only way. But it still dies. Can you post your Capture Task Sequence? here is mine. Am I missing anything?
<?xml version="1.0"?>
<SmsTaskSequencePackage xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:xsd="http://www.w3.org/2001/XMLSchema">
<BootImageID>NA1000B4</BootImageID>
<Category />
<DependentProgram />
<Description />
<Duration>360</Duration>
<Name>z_Capture8200</Name>
<ProgramFlags>152084496</ProgramFlags>
<SequenceData>
<sequence version="3.00">
<group name="Error Catching Top" description="">
<group name="Capture 8200" description="">
<step type="SMS_TaskSequence_PrepareOSAction" name="Prepare Windows for Capture" description="" runIn="FullOS" successCodeList="0">
<action>osdprepareos.exe /activate:%OSDKeepActivation% /bmsd:%OSDBuildStorageDriverList%</action>
<defaultVarList>
<variable name="OSDBuildStorageDriverList" property="BuildStorageDriverList">false</variable>
<variable name="OSDKeepActivation" property="KeepActivation">false</variable>
</defaultVarList>
</step>
<step type="SMS_TaskSequence_CaptureSystemImageAction" name="Capture Operating System Image" description="" runIn="WinPE" successCodeList="0">
<action>osdcapturesystemimage.exe</action>
<defaultVarList>
<variable name="OSDCaptureDestination" property="CaptureDestination">\\OurServer\d$\WIM\Windows 7\hp8200fat.wim</variable>
<variable name="OSDCaptureAccountPassword" property="CapturePassword">
</variable>
<variable name="OSDCaptureAccount" property="CaptureUsername">na\MyAdminID</variable>
<variable name="OSDImageCreator" property="ImageCreator">
</variable>
<variable name="OSDImageDescription" property="ImageDescription">
</variable>
<variable name="OSDImageVersion" property="ImageVersion">
</variable>
</defaultVarList>
</step>
</group>
</group>
<group name="Error Catching Bottom" description="">
<step type="SMS_TaskSequence_ConnectNetworkFolderAction" name="Connect to Network Folder" description="" runIn="WinPEandFullOS" successCodeList="0">
<action>smsnetuse.exe %SMSConnectNetworkFolderPath%</action>
<defaultVarList>
<variable name="SMSConnectNetworkFolderDriveLetter" property="DriveLetter">O:</variable>
<variable name="SMSConnectNetworkFolderPassword" property="Password">
</variable>
<variable name="SMSConnectNetworkFolderPath" property="Path">\\OurServer\d$\TSErrorLogs</variable>
<variable name="SMSConnectNetworkFolderAccount" property="Username">na\MyAdminID</variable>
</defaultVarList>
</step>
<step type="SMS_TaskSequence_RunCommandLineAction" name="create log folder for target machine" description="" runIn="WinPEandFullOS"
successCodeList="0 3010">
<action>smsswd.exe /run: cmd.exe /c md O:\%_SMSTSMACHINENAME%</action>
<defaultVarList>
<variable name="CommandLine" property="CommandLine" hidden="true">cmd.exe /c md O:\%_SMSTSMACHINENAME%</variable>
<variable name="SMSTSDisableWow64Redirection" property="DisableWow64Redirection">false</variable>
<variable name="_SMSTSRunCommandLineAsUser" property="RunAsUser">false</variable>
<variable name="SuccessCodes" property="SuccessCodes" hidden="true">0 3010</variable>
</defaultVarList>
</step>
<step type="SMS_TaskSequence_RunCommandLineAction" name="copy logs to folder" description="" runIn="WinPEandFullOS" successCodeList="0 3010">
<action>smsswd.exe /run: cmd.exe /c copy %_SMSTSLOGPATH%\*.* O:\%_SMSTSMACHINENAME%</action>
<defaultVarList>
<variable name="CommandLine" property="CommandLine" hidden="true">cmd.exe /c copy %_SMSTSLOGPATH%\*.* O:\%_SMSTSMACHINENAME%</variable>
<variable name="SMSTSDisableWow64Redirection" property="DisableWow64Redirection">false</variable>
<variable name="_SMSTSRunCommandLineAsUser" property="RunAsUser">false</variable>
<variable name="SuccessCodes" property="SuccessCodes" hidden="true">0 3010</variable>
</defaultVarList>
</step>
</group>
</sequence>
</SequenceData>
<SourceDate>2011-12-01T09:11:41</SourceDate>
<SupportedOperatingSystems />
<IconSize>0</IconSize>
</SmsTaskSequencePackage>