Image applies and it downloads the files for the Setup Windows and ConfigMgr step. Then goes to the login screen instead of continuing the TS.
I've tried making a new TS, new boot image, recapturing .wim. I don't see anything in the smsts.log and it's still in C:\_SMSTaskSequence folder.
I could try making a fresh reference image, but I don't know that it'd help. Our Windows 7 TS is working just fine.
setupact.log
setuperr.log
smsts.log
smsts-20150724-032921.log