According to the doc linked below, the error I am having is supposed to be fixed in 10.3.1, which I was also hoping was implemented in 11, which it appears it is not.

Novell Documentation
Unable to upload winpe.wim from the Windows 7 or Windows 2008 Automated installation Kit

I have experienced the error on Windows 7 64-bit Ultimate N edition.

I see that the upload is not allowing me to upload the extracted contents instead, also, if I can only choose one WinPE, I must choose 64bit WinPE due to, any thoughts on this?