Image deployment stops after reboot

We are about to begin a large windows XP deployment on new hardware
and are seting up to use BDD 2007. I have spen the past few months
getting BDD2007 setup and configuring a PXE bootable WinPE image so we
don't need bootable CD's for each of the PC's. My thinking was we
would complete one install from source files, add our apps, capture
the image as a basline, then deploy the image.

The first phase went fine, XP was setup completely, it booted into the
OS, installed the apps, then rebooted into WinPE and said the setup
completed. It then captured the image. We then configured this image
as a deployment option.

This is where I am starting to have a problem. The system boots into
WinPE, downloads the image, boots into XP with the autologin admin,
then just stops. It is like the commands that are supposed to be run
aren't being done. At first we were just going to turn off the
autologin in the registry and call it a day, but now we are looking to
migrate user profiles as part of the install, so unless we want to do
it manually for each machine, we need to get this resolved.

The process is clearly stopping in the middle, if I manually boot
back to the WinPE image, it starts throwing errors about not being
able to continue without being booted into Windows XP.

Has anyone run into this? The task lists for te install and the image
install look almost identical. What controls the tasks that XP
performs on boot? I assume it copies everything it needs locally...

Any help would be appreciated!