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Thanks Gagorian, that was it.
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Yes, $OEM$ seems to get copied to the CD correctly (at the CD root) . I can even install the drivers from the CD after the install. They just don't get copied to the HD.
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Thanks for the reply. I realized after your post that I didn't phrase the question accurately. What I meant is that the files within $OEM$ are not being copied. For instance there is a $OEM$\$1\drivers directory. After installation there should be a C:\drivers directory, but it didn't get copied.
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I have created an $OEM$ directory under FILESCD. Inside $OEM$ I have the directories $1 and $$. It is my understanding that anything inside the $1 directory will get copied to the root of the installation drive during installation and that anything inside the $$ directory gets copied to the Windows folder. I have created the structure and added the files I want included. When I create the cd the $OEM$ directory is copied to the cd. But when I perform an installation the files inside the $OEM$ directory do not get copied to the hard drive. What am I doing wrong?