ERROR – Unable to find SETUP, needed to install the image

Hi guys,
While configuring MDT 2010 today I struggled a bit with a strange issue.
I’ve installed a server with MDT 2010 RU1 on it, latest WAIK and WDS on it to do a network installation.
Once I captured an image from my source computer I imported the image to the MDT deployment share, created a task sequence that deploys it and start my target computer with a network boot.
The target computer connected to my network share succesfully and it presented with the deployement wizard I previously created. Once the deployement wizard started, it failed with the following error:
To better understand the issue, I opened the BDD.log file and found the following:
ERROR – Unable to find SETUP, needed to install the image \\Servername\DeploymentShare$\Operating Systems\Image.wim
ZTI ERROR – Non-zero return code by LTIApply, rc = 1

Litetouch deployment failed, Return Code = -2147467259  0x80004005
After cracking my head a bit I found the solution – when I imported the image I chose ‘Setup and Sysprep files are not needed’
When in fact, I had to choose ‘Copy Windows Vista, Windows Server 2008…’ and point it to the previously imported original Windows 7 Installation files, like that:
After the import I updated my DeploymentShare and the rebooted my target pc, this time all went well!


  1. This post saved me! There’s a lot of really bad MDT documentation out there, full of assumptions and frustrating half-explanations. Thanks for posting screens and actually explaining what you did!

  2. Excellent Post! Good brake down of the problem and solution with snapshots. Solved my problem Thanks!

  3. What client OS were you trying to deploy? I ran into this same issue, and your suggestion did correct the problem. I was trying to deploy Windows 7 and it reads as if I DONT need to copy these files but sure enough if I check this option it works.

  4. Thank you very much for posting this. I’m going through some of the MCITP labs right now, ran into this problem and could not figure out the cause. This post provided a quick, easy explanation and I’m now practicing deployments without issue.

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