Hi,
Thanks for updating this thread. Next time the issue comes up, I'll give the new patch a try. Just to let you and others know (in case the new patch doesn't fix this particular issue) the way I've been able to resolve it is by opening up services, go to Windows Image Acquisiton service, click properties, go to log on tab, select Local System Account and check the box that says Allow Service to Interact with Desktop. Restart the service (or computer) and bam, it works.