Yep i got it working you were right on the boundaries issue but there were two thing actually:
After the changes done today we can finally see the image being applied to the Virtual Machine correctly:
2 major changes done:
FIle side (for the wim file to be pulled from the DP in Madrid):
It seems that by deleting a flag on the DP it forces the package to be downloaded, not sure though i have to test that theory on the future:
The packages are transferred temporarily to C:\SMS_DP$
Then are moved to C:\SMSPKGC$ when finished
The flag removed today was: "C:\SCCMContentLib\PkgLib\F0100038.INI"
With these steps the image got downloaded to C:\SMSPKGC\F0100038
Distribution point boundaries:
By changing the boundaries from default to the ones that were already created for Lausanne Madrid etc the DP started casting the file instead of letting the SCCM server do it which was really slow. Now the image has been downloaded in less than 15 minutes, before was more than one hour.
Thank you very much for putting me on the right direction, I hope this helps someone on the future as well.
Have a good week.