Thanks for responding. I understand what you are saying, but were stuck on creating the partitions. Not sure if I'm selecting the correct options when doing so as when you add a partition action in provisioning, it gives you alot of different options. I just need to know the magic combination of options to choose when adding my partition/deployimage actions into the template for both the system and OS partitons and then to deploy the image.
I also read here (on the last post) that you don't need to capture a seperate .wim for the system reserved partition.