Install Windows 7 in one VHD fileSeptember 30, 2009
Using imagex to edit a .wim fileOctober 12, 2009
If you are having this issue check your BIOS settings to verify that the hard drive is in the boot list. I had an issue where I was trying to apply an image and it was failing after partition and format. It was almost immediate. I checked the log files but nothing was descriptive. Apparently SCCM must have the ability to check your BIOS boot order and if it does not see the hard drive in there it fails it.
Another thing I tried was downloading diskpart.exe to the x: drive and using the clean command. This ran successfully so that is how I narrowed out that being the issue.