BDD 2007 does not skip product key

I am testing the deployment of Vista Business VLK with BDD and I have everything working except 1 issue.

If I select "No product key is required" during the client install wizard or use SkipProductKey=YES in the customsettings.ini I still get prompted for a product key during the image deployment. I have Volume License Media.

My Bootstrap.ini is:

[settings]

Priority=Default

[Default]

DeployRoot=\\XXXXX\Distribution$

userDomain=xxxxxxxxx

UserID=xxxxxxxxx

SkipBDDWelcome=YES

and my CustomSettings.ini is

[settings]

Priority=Default

Properties=MyCustomProperty

[Default]

OSInstall=Y

SkipBDDWelcome=YES

SkipUserData=Yes

UserDataLocation=NONE

SkipCompterBackup=YES

SkipApplications=YES

SkipAppsOnUpgrade=YES

Applications1={f5229186-4b94-4896-a9c2-c9544fcfe8c5}

SkipCapture=YES

SkipAdminPassword=YES

SkipProductKey=YES

SkipDomainMembership=Yes

JoinWorkgroup=WORKGROUP

ComputerName=%SerialNumber%

SkipTimeZone=Yes

TimeZone=290

TimeZoneName=New Zealand Standard Time

SkipLocaleSelection=YES

UILanguage=en-NZ

InputLocale=en-NZ

SystemLocale=en-NZ

UserLocale=en-NZ

KeyboardLocale=en-NZ

SkipBuild=Yes

BuildID=BUILD01

After continuing without entering a product key I can verify that I have a VLK install by running slmgr -dlv

and checking that the description has VOLUME_KMSCLIENT and that the KMS client information is populated.

I am not running a KMS server on site as yet as this is just a test environment

Any help would be appreciated

Thanks

Andrew