Hello Vcmckee,

What OS is running your computer? Vista machines cannot be used as package servers. 

If you want to know more about the selection process there is a stored procedure that is executed when you load the Package Server pages.

The procedure name is sp_PSWin32Candidates and in the SP3 code it is defined as (I highligthed the code that should interest us here):

CREATE PROCEDURE dbo.sp_PSWin32Candidates

@GetOSNames  bit =0,

@Name nvarchar(50) = '%',

@Domain nvarchar(50) = '%',

@OSName nvarchar(50) = '%'

AS

BEGIN

if @GetOSNames=1

BEGIN

INSERT into PSCandidates select distinct Guid  from vComputer where ([System Type]='Win32' OR [System Type]='Win64')

AND ([OS Name] LIKE '%2000%' OR [OS Name] LIKE '%XP%' OR [OS Name] like '%NT%' OR [OS Name] LIKE '%2003%' OR [OS Name] LIKE '%2003%' )

END

ELSE

BEGIN

Insert into PSCandidates SELECT Distinct vComp.[Guid]

FROM vComputer vComp

INNER JOIN Inv_AeX_AC_Client_Agent ON Inv_AeX_AC_Client_Agent._ResourceGuid = vComp.Guid

WHERE vComp.IsLocal = 1

AND IsManaged = 1

AND ( vComp.[System Type]='Win32' OR vComp.[System Type]='Win64')

AND ( vComp.[OS Name] LIKE '%2000%' OR vComp.[OS Name] LIKE '%XP%' OR vComp.[OS Name] LIKE '%NT%' OR vComp.[OS Name] LIKE '%2003%' )

AND Cast( Substring( Replace( Replace( Inv_AeX_AC_Client_Agent.[Product Version], ' ', '' ), ',', '.' ), 1, 3 ) as float ) >= 5.5 

AND Upper([Agent Name]) IN ( 'ALTIRIS EXPRESS NS CLIENT', 'ALTIRIS AGENT' ) 

AND Lower(Name) LIKE Lower(@Name)

AND Lower(Domain) LIKE Lower(@Domain)

AND Lower([OS Name]) LIKE Lower(@OSName) 

AND vComp.[Guid] NOT IN

(

SELECT ResourceGuid 

FROM CollectionMembership AS CollMem

WHERE CollMem.CollectionGuid = '4C31E964-D085-42D8-BFB0-D439B4C61E47'

)

and vComp.[Guid] not in

(select Value from ServerSettingGuids where [Name]='NSResourceGuid')

END

END 

So in effect, your computer must be managed on the server, and cannot be a Windows Vista or Server 2008 box (but I believe this has changed in lately, so I suggest you check the sp running on your server ;).