We have a build and capture task sequence configured, this runs no problem if the Install Software Updates step is disabled. We have a seperate WSUS server configured as a Site System with the SUP roll. A collection with the TS Variable "DoCapture" = YES that the VM used to build the core image is a member of. SMSSLP,SMSMP & FSP configured in the step "Setup Winodws and ConfigMgr to allow the workgroup machine find its management point. A Update Deployment advertised to the collection. The step "Install Software Updates" when enabled hangs at 0% complete downloading 1 of 42 updates. I have been reading up on the issues with this TS http://support.microsoft.com/kb/2009754 http://social.technet.microsoft.com/Forums/en-US/configmgrsum/thread/b525aafc-b613-49a2-9015-3ae1c2db2e01 I've disable our Software Installation Step that was installing 12 additional applications including Office 2010 (we also want to security patch for Office in our core image) this did not change the behaviour. SMSTS.LOG RefreshUpdates operation has been completed, hr=0x00000000 GetIPriviledgedInstallIngerface successfull Installing all updates targetted for this computer Installation of updates started Waiting for installation job to complete waiting for job status notification <- repeaded once every minute... Installation Progress stays and 0%complete of Downloading 1 of 42 updates Ive even thought of scrapping the Install Updates Task and service the WIM offline. What have i missed in getting this TS Step to function.. Also just read this which sounds like it relates as in the updates package i have both office 2010 and Win 7 updates. Ill strip out the Office and just see if it works doing plain Win 7 + 7 updates only. http://social.technet.microsoft.com/Forums/en-GB/configmgrosd/thread/84d3b06a-e4ae-4a1e-992c-d79487b617ae

Issue is currently being worked on... http://blogs.technet.com/b/configmgrteam/archive/2011/01/28/known-issue-install-software-updates-action-hangs-on-windows-7.aspx Im seeing this when running the capture against a ESXi 4.1 VM so not an Intel driver issue in this case...