I am having this same issue with nlite. If I use winnt.exe or install from cdrom not issue, however if I use winnt32.exe from BartPE is vomits all over itself and does not install IE. I have looked at the differences in the txtsetup.inf, dosnet.inf and didn't see anything glaring. One weird thing is that in my original source, I am not seeing this file either. Does it really exist?