First question - are you using DS 7.1 beta when using PCT and getting "Error 1"? If so, there's a bug I found with the Capture Personality task and using the variable %COMPNAME%. This is a new feature with PCT and 7.1 (using variables that is). If you add anything to the line with %COMPNAME% such as a period, or exe, or anything, the task will run on the client and your resultant pct package will be named [computername]..exe or [computername].exe.exe. Or you can just remove the %COMPNAME% with a name like mycomputer and the resultant pct package will be called mycomputer.exe.

If you're using DS 6.9 SP3 for your testing, send me an email at rick_gines@symantec.com and I'll forward you a technical whitepaper on performing migrations with DS 6.9 SP3 that was recently completed and posted.

Hopefully this'll get you past the "Error 1".

 I'm facing this dilemma with 6.9 SP3.  Email in bound, Rick.

Ditto.  Might be nice if it can be posted on here.  I'm sure, Rick, that you don't want your e-mail clogged with requests. 

Received an e-mail from Rick this morning directing me to http://www.symantec.com/windows7

The full link to the document is currently here:  
http://eval.symantec.com/mktginfo/enterprise/tech_briefs/b-techbrief_7_steps_to_windows_7.en-us.pdf 

I use USMT 4.0 to do the migration from XP to Win 7.  It appears to work better and is much more stable. I have a completed image for Win 7 with drivers so let me know if you need some help with the image.