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Access Denied uploading to WDS

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Figured I'd throw this out here in case anyone has any ideas. I am currently out a test server and won't have one until later this week. In the meantime, I've been experimenting with VMs. Here is my set up:

VM1 is running Server 2008 RTM Standard. It is Domain Controller, DHCP, DNS, WDS. I have added in the BOOT.WIM (Win7 x86 SP1) to Boot Images, and the matching INSTALL.WIM to Install Images. I then create XML files to handle authentication on the Boot Image(s), and XML attached to Pro and Home Premium Install Images to get them to boot into Audit Mode and the default install key. I have created a Capture Image from within WDS. I create a user account. I assign this account Full Control Permissions on Reminst\Images\ImageGroup.

VM2 is blank, does a PXE boot to WDS. Select WIn7 Setup option. Select Win7 Pro. It installs reboots and boots to Audit Mode, so all XML works. I then sysprep /generalize /reboot /audit and boot to the Capture Image. I select the volume with the OS on it, connect to the WDS Server and enter in the credentials that has write access to the image group. The error I receive is:

Uploading image to WDS Server: Access Denied

First thing to note is the Capture Boot Image prompts for credentials, so evidently the Server specified XML (that is used properly on the Setup WIM) is ignored. I use the same account that is also used for deployment. This account does have admin rights.

Second, the WIM is created, as I can find it on the drive. It appears that only the upload portion is the problem.

Third, since I am using a VM, I have chosen to save the image on the VM's hard drive, which is also the drive the capture is done from. Could this be a problem? I am not sure if it is worth the time to have it capture to either the Server Guest or the Host OS...

Any thoughts?

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