When the task fails, what does Console's task steps say? Does it say time out or something else. You can look at the task steps by going to the task log from menu also. By right clicking the task step, you can look at the details too. It would give a better idea about the failure.
If the network does not get initialized with WinPE, most common issue is not having the correct driver. You can add new drivers to WinPE from Ghost Boot Wizard. If you are not sure how to do it, I think there were couple of posts with detailed instructions in this forum.
If it says virtual partition need to relocated, there is a good possibility that actually a previously created virtual partition exists in the machine. Then when it tries to clone, it identifies the virtual partition and gives that error message. Could you get a copy of gdisk32.exe from console and have a look at the partitions using command 'Gdisk32 1' to see if there is a virtual partition?
Krish