Hi Wally,
Rather than being anything wrong with the network template, maybe the files needed to create the virtual partition are not copied to the client.
To verify this, on your client machine check if there is a folder named 'Template' in \Program Files\Symantec\Ghost\Incoming. If there isn't, the network driver template is not copied to the client, hence the virtual partition cannot be created.
The cause might be a firewall on the client that does not allow the files to be transferred to the client. Ghost 8.0 was released before SP2 for XP and another product (Ghost 8.2) was released to support XP firewall. Could you test this having the firewall turned off on both client and Console? If it's working you can create rules manually to allow the operation.
Hope this helps,
Adina