I finally figured out why DS HF3 was failing in my environment. After digging for days for a log file that would tell me something useful I cam across this in my system TEMP directory:
MSIef82.LOG
Error 1312. Cannot create the directory 'F:\Program Files\Altiris\Deployment\BDC\bootwiz\oem\DS\winpe\x64\Base\Program Files\Symantec\Deployment\RDeploy'. A file with this name already exists. Rename or remove the file and click Retry, or click Cancel to exit.
=== Logging stopped: 2/3/2014 13:23:50 ===
I renamed rdeploy to rdployb.bak and was then able to preform the install without any errors in the Altiris Log Viewer.