I found the issue...i missed this in part 7 step 8:
Tip: you could create a Configuration Manager Client Package from Defintion if you want to have control over the abilit to access this content directly from a distribution point. The built in package does not give you this flexibility as all options are greyed out.
I made a copy, edited the task to use the copy...and wahla, the deployment works!!!
Thanks, hope this helps someone else!!