After upgrading a Windows Server 2003 ADS 1.0 (Automated Deployment Services) installation to ADS 1.1, and adding a Microsoft Windows Preinstallation Environment (Windows PE) repository, the ADS devices do NOT load Windows PE on restart, even though they are configure to load Windows PE. You receive:

Error: Failed to download the setupldr file via TFTP from the ADS NBS server. Please check the event log on the ADS PXE server for more information. The system will reboot in 15 seconds.

The Application event log records:

Event Type: Error
Event Source: ADSPXE
Event Category: PXE
Event ID: 264
Date: MM/DD/YYYY
Time: HH:MM:SS
User: N/A
Computer: <ComputerName>
Description: An error occurred during an attempt to boot to winpe. Please check the Windows PE repository list and configure the device or the controller system variable called RepositoryName. The RepositoryName must be assigned matching a Windows PE repository name prior to the device booting to winpe.
The Builder service should be started and have successfully built the ramdisk (c:\program files\microsoft ads\tftproot\nbs\products\\{d799ccb5-28d1-4c77-b01f-ac391031d9ed\}\\{7b4b35 ef-b89b-eefa-c501-3fea67e3b41b\}.ramz) used by the windows PE.
For more information, see Help and Support Center at <http://go.microsoft.com/fwlink/events.asp>

This behavior occurs because Windows PE tries to download C:\Program Files\Microsoft ADS\tftproot\nbs\boot\x86\Setupldr but Ntldr is located in this folder, not the Setupldr boot loader file.

To fix this behavior:

1. User Windows Explorer to navigate to C:\Program Files\Microsoft ADS\tftproot\nbs\boot\x86\<WindowsPE_folder_name>, where <WindowsPE_folder_name> is the name you assigned to the Windows PE repository when you added the Windows PE repository to ADS.

2. Copy Setupldr to C:\Program Files\Microsoft ADS\tftproot\nbs\boot\x86.

3. Restart the ADS device.