OSD Exits to Ctl-Alt-Del after Reboot from Software Update, leaves Clients in provisioning mode

Question

We are seeing a problem where the Windows 7 SP1 OSD wrongly exits to the Ctl-Alt-Del screen:  This problem is occuring with about %25 of our Newly Imaged PCs during the Software Updates step of the Task Sequence (of which there is about 9
outstanding updates), the PCs are rebooted as 4 of these updates finish with COMPLETE_SOFT_REBOOT_NEEDED.
After the Software Updates Reboot the following errors are found:
SMSTS.log reports:
  Failed to set log directory. Some execution history may be lost. The system cannot find the file specified. (Error: 80070002; Source: Windows)
UpdatesDeployment.log reports:
  Failed to save an instance of CCM_TargetedUpdateEx1, error 80041033 UpdatesDeploymentAgent 3/04/2013 4:56:39 PM 3080 (0x0C08)
  Failed to get class instance for CCM_TargetedUpdateEx1, error 80041033 UpdatesDeploymentAgent 3/04/2013 4:56:39 PM 3080 (0x0C08)
ExecMgr.log Reports:
  Failed to open to WMI namespace '\\.\root\ccm\Policy\Machine' (8007045b) execmgr 3/04/2013 4:56:39 PM 3496 (0x0DA8)
  Failed to ConnectSettings for ICcmPolicyAgent in CSoftDistPolicyNamespace::ConnectToNamespace execmgr 3/04/2013 4:56:39 PM 3496 (0x0DA8)
  Failed to ConnectToNamespace in CSoftDistPolicyNamespace::GetMachinePolicy execmgr 3/04/2013 4:56:39 PM 3496 (0x0DA8)
  Failed to connect to machine policy name space. 0x8007045b execmgr 3/04/2013 4:56:39 PM 3496 (0x0DA8)
  Failed to connect to user policy name space execmgr 3/04/2013 4:56:39 PM 3496 (0x0DA8)
I have checked the logs based on other forum suggestions I can say the following:
-Network adapter is getting valid address;
-I do not have a step for "Install Roles and Features";
-I can apply registry changes for each machine to take them out of Provisioning mode, and after that I dont have any problems - this is far from the solution that I hope for.

Answer 1

Any update on this as I am struggling with this issue for the past few days ?
Our image was built last year so when I want to recreate it, it has to do 150 updates. We don't have WSUS updates into SCCM so I had to use a wsf script to get the updates from our WSUS server.
If I image the computer without doing the updates and do them manually by running the script here is what happens :
1st execution of the script : 137 updates installed and a reboot is required
I manually reboot
2nd execution of the script : 13 updates installed and a reboot is required
I manually reboot
3rd execution of the script : 4 updates installed
I manually reboot
4th execution of the script : no updates required.
If I only do 1 execution of the script in my TS : it works fine, it installs the 137 updates but then when the PC is done imaging, it still needs the 13+4 other updates which I don't really like.
At first, I tried adding this in my TS:
WSUS 1/3
System restart (triggered by the TS)
WSUS 2/3
System restart (triggered by the TS)
WSUS 3/3
System restart (triggered by the TS)
This stops at step #2, I see it do the 137 updates and then when it reboots, it goes into provisioning mode and doesn't continue. Looks like there is an issue with the reboot so...
I have tried removing the reboot as follows
WSUS 1/3
WSUS 2/3
WSUS 3/3
This installs the 137 updates in step #1 and downloads the 13 updates in step 2 and 3 but log file says a reboot is required to install them. The TS then continues but once it meets a System restart triggered by the TS, it doesn't resume the TS and goes
also in provisionning mode.
Any idea on why it goes into provisioning mode after installing the updates ? To me, it looks like there is a probably with the state that WSUS puts the computer in, like it is pending reboot but the System restart by the TS doesn't seem to work when trying
the reboot ?
Thanks!!!!