In #1, does the client show as connected in the console? If you run a refresh task, does it execute successfully?
Because this error indicates that console was waiting for client to respond but it did not. Default time is about 20 minutes, possibilities are either client was not responding to start with or it encountered a problem during VP creation.
In #2, did you see if the client booted to VP?
Usually this error indicates that console did not detect that if the client booted to DOS or not, though there are no errors creating virtual partition. One common possibility is DOS network driver not correct. Client boot to DOS, but network driver does not work so it fails to tell the console that it is in DOS. In this situation client boot to Windows again, and then Console thinks that it did not boot to Virtual Partition.
Krish