Thanks Johan.  I'll give this a shot as my next step in deploying BDD2007.  

I'm deploying this to a lab environment so this addresses my need for
capturing an existing base XP configuration.  However, I also need something
very simple which I can hand over to testers, which is why I was trying to
temporarily interrupt the LTI process.  The LTI process is very simple, works
well, and is easy for them to use.  The only issue I run into is the
inablility to insert a step allowing manual changes prior to the capture.  
Any suggestions that will help with this requirement?

Thanks again,
Todd

Ken,
On the LTI side of my original question...
- all the apps I deployed are MSI based worked fairly easily once I realized
the working directory must the same location as my MSI and not some other
temporary working location.
- patches are deployed after the install via WSUS which probably doesn't
help you
- I'm not trying to modify reg entries or GP edits since these are all
controlled via my Domain group policies.
- After several trial and error cycles of capture and deployment I did
finally get the process down and now it works well.  I just followed the
BDD2007 documentation for the Image Capture and LTI.

I suspect your question really leads to the same question I'm still trying
to get answered.  The LTI process works well and easy to use.  However, for
my more complex and/or non-scripted installations and modifications I need a
way to interrupt the standard LTI process to allow the manual intervention,
then continue with the LTI capture.

Hope this helps at least clarify what I have been successful at so far...
Todd