SCCM 2012: OSD Windows 7. How to get OS installed on drive C:
June 24, 2013
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With SP1 Microsoft decided to stop using setup.exe for Windows 7 Install and Capture Task Sequence. As well known blind installation from install.wim file from W7 media results OS installed on drive D:.
To get OS installed directly from install.wim to drive C: Microsoft introduced a new variable OSDPreserveDriveLetter this variable need to be set to FALSE before Apply OS step in the TAsk Sequence. Any partitions before one you use for the image deployment must be set with NO Letter.
more details can be found here: http://scug.be/sccm/2013/01/13/configmgr-sp1-windows-7-deployment-is-not-supported-anymore-from-the-setup-exe/