I was a few troubleshooting techniques away from calling Novell and creating an SR when all of a sudden my problem seemed to go away! Which is a good thing but I'm still curious if anyone knows why this happened in the 1st place:
We just upgraded our servers to ZCMv11.2.3 which may have resolved the issue I was having because when I noticed a problem, I think we were still on 11.2.2. But in any case, when we were installing ZEN agents on freshly imaged machines, they would go through the 50 step installation process just fine but on step 50 (setup.exe), the splash screen would pop up with a message along the lines of "zen agent install failed. Retrying..." and it would never successfully complete. We manually rebooted and the agent looked like it was installed but it wasn't managed or registered and it couldn't be managed or registered- for all intents and purposes, it was corrupt. This was happening using custom deployment packages- one with .NET and one without it but they both failed. The image is 32-bit Win7 with .NET 3.5.1 installed and enabled (.NET 4 is also installed on the image). The only agent that installed correctly was the Default Agent. However, the Default Agent would hang for upwards of 10 minutes on the last step (50 of 50) before it finished. Today, I installed 3 custom built ZEN deployment packages (without .NET) and they all succeeded. Upon a quick glance, the image appears to be the same in regards to installed software (MS updates, .NET framework, etc.) but the only thing i can think of that changed since we first noticed this problem is the server upgrade. Could that have been what resolved this issue? Or is there something I can cross reference and check on the local PC?

Any insight would be greatly appreciated. p.s. I know this is a n00bish mistake but I never pulled the log files from the PCs that failed/ hung... I will if it happens again though!

Thanks in advance!