Well, there's always my way But seriously, if /integrate isn't working, my intuition says that you've got something else going wrong with your CD. Of course, hfnetchk isn't the most reliable way of checking these days. What does MBSA report?
I'm not sure if it'll be much help, but my first thought is to take a look at the Sun Java express installer and see how they have it setup to download files when the MSI runs.
I'm pretty sure all you have to do is run the WMP10 installer with the /DisallowSystemRestore switch. That's been covered numerous times in the forum. (And BTW, I did a forum search for "disallowsystemrestore" and 7 pages of results came up).
I only see this error when my pack is integrated improperly (generally missing txtsetup.sif entries, which in turn angers sysoc.inf when it's executed). You guys should check your txtsetup.sif and see if the entries for my update pack are in it (you can see what entries should be there from the manual integration directions on my website). If they aren't there, then you can be certain that's what's causing the problem. And it means that there's a bug with how nLite adds those entries which causes them to not always be added. If they are there, then something else is causing your problems
Did you install the Cyberlink DVD Decoder as well? MPEG2 decoding and DVD decoding are two different things. They're related, but not one and the same.
They aren't hotfixes, so they don't support the /integrate switch. Run them silently during your unattended install or import the registry entries so WindowsUpdate thinks they've been run.