Not long ago I was using MDT 2013 to develop a few images.  Deploying from the server, whether booting from PXE, CD/DVD, or a USB drive worked fine.  However, when I created a stand-alone ISO and extracted it to a bootable USB Hard Drive, the image deployment failed with the following error:

Script not found
Unable to find LiteTouch.wsf needed to continue the deployment.

The error didn’t occur if I used the same ISO attached to a Hyper-V guest.

As I investigated I noticed that both the _SMSTaskSequence and MININT folders were not on the OSDrive, but on the USB drive.  I found a few forum posts and blogs that offered DISKPART CLEAN as an option but this didn’t resolve my issue.

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I eventually found some guidance from Keith Garner (MVP) that suggests that if a USB Hard Drive is larger than the target OSDrive, this error could result.  I played around with partition sizes and a few other things but it made no difference.  Only when I changed to a physically smaller USB drive was the problem resolved.

Apparently this “feature” was introduced in MDT 2012 and it still exists in MDT 2013.  Hopefully this will be fixed in MDT 2013 Update 1 (or whatever the next version will be called).

References

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Unable to find LiteTouch.wsf
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