When you configure the share path of a software installation package to be hosted on a Windows NT 4.0 server, the package may not be successfully applied, and the client computer logs the following events:

Source: UserEnv
Event ID 1000
The Group Policy client-side extension Application Management was passed flags (1) and returned a failure status code of (1612).

Source: Application Management
Event ID 108
Failed to apply changes to software installation settings. Software changes could not be applied. A previous log entry with details should exist. The error was The installation source for this product is not available. Verify that the source exists and that you can access it.

Source: Application Management
Event ID 102
The install of application "\{Package Name\}" from policy "\{Policy Name\}" failed. The error was The installation source for this product is not available. Verify that the source exists and that you can access it.

These errors occurs because the authentication requires Kerberos, which is NOT provided by Windows NT 4.0.

To workaround this issue, host software installation shares on a Windows 2000 Server or on Windows Server 2003.