In my lab i've migrated to cm 2012 and installed PCM, however the majority of my packages have a readiness state of

"the directory name is invalid" The source files are .exe's. SCCM 2012 RC with PCM SP1

from the PCMTrace.log

Microsoft.ConfigurationManagement.exe Information: 0 : 16/11/2013 14:58:30 Rule Decision for package: LAB00019 / VLC Player by rule Is Soft Dist Package is Correct package type

Microsoft.ConfigurationManagement.exe Information: 0 : 16/11/2013 14:58:30 Rule Decision for package: LAB00019 / VLC Player by rule HasContentPath is Content Source Path Found

Microsoft.ConfigurationManagement.exe Information: 0 : 16/11/2013 14:58:30 Rule Decision for package: LAB00019 / VLC Player by rule HasPrograms is Package contains valid programs.

Microsoft.ConfigurationManagement.exe Information: 0 : 16/11/2013 14:58:30 Rule Decision for program Silent VLC Install from package LAB00019 by rule ProgramType is Progam is an Exe/Other install 

Full Description Package LAB00019:Silent VLC Install is an install for an Exe/Other program.

Microsoft.ConfigurationManagement.exe Error: 0 : 16/11/2013 14:58:30 Rule Decision for package: LAB00019 / VLC Player by rule Error converting package is The directory name is invalid.

any advice, much appreciated

SCCM 2012 RC with PCM SP1

Are you really using RC (=release candidate), so pre-release software? There's CM12 RTM, SP1 (CU3) and R2, so you should no longer use beta software even for testing purposes. Or was this just a typo?

typo, using CM12 SP1. The MSI's have a readiness of "Manual" which is fine, i've fixed those its just the .exe's that have a readiness state of "The directory name is invalid"

as a test i moved the source files of one of the apps to a local share then changed the data source to the new location and re-ran PCM - same thing. Have you come across this? I've not seen many issues documented in my "Google-ling"

Yes, I know this is an old post, but Im trying to clean them up. Did you solve this problem, if so what was the solution?

Since no one has answer this post, I recommend opening  a support case with Microsoft Customer Support Services (CSS) as they can work with you to solve this problem.