Running Zenworks 11 sp2 (monthly update 2)

So I was building my first Windows 7 image (we've been using XP) and I finally get my sysprep ready and working as I want it

- Sysprep runs
- Sysprep downloads the Zenworks agent
- Sysprep installs the Zenwork agent - reboot
- Zenworks installs the Novell client and other software

I'm pretty happy about my setup and so I take my "imaging" workstation, run sysprep then the workstation shuts down. All good, I take an image of the workstation and try to apply it to another workstation... The imagine process runs great, but at about half of the process, I get kicked back to linux with this error message:

"could not create linux hard link"

I guess that something must have gone wrong when I put the image from the original workstation to the server. I take another image and apply it to another workstation (a different one, to be sure)... same error! I searched about this error but couldn't find anything. Anyone with any idea what is the problem and how I can fix it?