Q: I'm trying to create a build and capture task sequence in System Center 2012 Configuration Manager SP1, but it can't see the Operating System Installer Package. Why not?

A: Microsoft made a change between Configuration Manager 2012 RTM and Configuration Manager 2012 SP1 related to how the build and capture a reference operating system image task sequence works. In 2012 RTM the task sequence wizard allows an Operating System Installer to be selected; this is no longer the case in 2012 SP1. In 2012 SP1, the actual image (WIM file) is required, which needs to have been imported to Operating System Images in order to be selected, as the following figure shows.

The reasoning for this change was possible conflicts between Windows PE and Windows setup versions. Using an Operating System Image instead of an Operating System Installer provides a more consistent and supported experience.