SuccessCodeList:0 but application won't install

SuccessCodeList:0 but application won't install while on offline installation..
Precisely, I have a clean TS which executes like a good kid! But 3 applications LN 8.5.3 incl Sametime , Lotus Notes 8.5.3 FP3 MU and an LN Upgrade pack.  I am attaching a copy of the smsts.log. Please share your views.
I might do a workaround by disabling staging of the image and running it straight from the boot media. Also , if you must know the online installation works just fine.
[LOG[
Parsing step node: Lotus Notes 8.5.3 incl. embedded Sametime 8.5.2]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:558">
<![LOG[Description: ]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:562">
<![LOG[ContinueOnError: ]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:566">
<![LOG[SuccessCodeList: 0]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:574">
<![LOG[(__hrMethodRetVal == ((HRESULT)0L)) || (bFailIfMissing == false), HRESULT=80070002 (e:\nts_sms_fre\SMS\common\inc\ccmxml.h,566)]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context=""
type="0" thread="2964" file="ccmxml.h:566">
<![LOG[No condition is associated with the step.]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:776">
<![LOG[Disable: ]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:583">
<![LOG[Start in dir: ]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:591">
<![LOG[Run in attribute: FullOS]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:595">
<![LOG[Timeout: ]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:599">
<![LOG[DefaultVarlist found]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:683">
<![LOG[Variable name: _SMSSWDProgramName]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:724">
<![LOG[Action command line: smsswd.exe /pkg:PSG00199 /install /basevar: /continueOnError:]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964"
file="tsxml.cpp:626">
<![LOG[Adding instruction at 373]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:628">
<![LOG[
Parsing step node: Lotus Notes Upgrade Pack 8.5.3 UP1 MUI]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:558">
<![LOG[Description: ]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:562">
<![LOG[ContinueOnError: ]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:566">
<![LOG[SuccessCodeList: 0]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:574">
<![LOG[(__hrMethodRetVal == ((HRESULT)0L)) || (bFailIfMissing == false), HRESULT=80070002 (e:\nts_sms_fre\SMS\common\inc\ccmxml.h,566)]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context=""
type="0" thread="2964" file="ccmxml.h:566">
<![LOG[No condition is associated with the step.]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:776">
<![LOG[Disable: ]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:583">
<![LOG[Start in dir: ]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:591">
<![LOG[Run in attribute: FullOS]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:595">
<![LOG[Timeout: ]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:599">
<![LOG[DefaultVarlist found]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:683">
<![LOG[Variable name: _SMSSWDProgramName]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:724">
<![LOG[Action command line: smsswd.exe /pkg:PSG00190 /install /basevar: /continueOnError:]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964"
file="tsxml.cpp:626">
<![LOG[Adding instruction at 374]LOG]!><time="08:00:04.088+-120" date="06-25-2013" component="TSManager" context="" type="1" thread="2964" file="tsxml.cpp:628">

Hi Jason,
I'm experiencing this problem with Stand-alone (USB) OSD media also. I think others have reported it but not posted extra info to help diagnose - see "Programs not installing on stand-alone media task sequence" thread.
I've seen this intermittently sometimes builds go through fine but it seems sometimes the Install Software action is just forgotten.  For example I've just built a PC using a usb key successfully with all programs present.  With the same key I've
re-run it and our Firefox package is missing.  The only entries in smsts.log for Firefox are in the 'Parsing' sections that you advise aren't relevant plus this bit:-
Deleted setting 'CCM_SoftwareDistribution.ADV_AdvertisementID="{39997A92-226D-4813-B2FB-EEABDDA3D13D}",PKG_PackageID="PUB000A3",PRG_ProgramID="Mozilla_Firefox_17.0.4_p1 Silent OSD"'.
This is the same for both successful and unsuccessful installs of the package.  The only difference I can see is that the msiexec log file is created for the successful install but there is no log for an unsuccessful one.
Also the "All Status Messages from a Specific System" report shows the two entries "Program started for advertisement..." & "...completed successfully" only when Firefox installs ok.  For the installs where the app doesn't install there is no mention
whatsoever in the report of actions related to Firefox.
Are there any other logs which may help me get to the bottom of this?
With thanks
Jim

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