Ok things got even stranger now......
I pulled all of the driver files out of ldmain\landesk\files\drivers including the database.
I left nothing in there and rebuilt the database which said it processed 0 files and 0 drivers.
I then recreated the boot stick and tried to image a PC again.
HII failed again and it was still trying to pull drivers that were in there including the USH driver for the E6420, among others as well.
I have attached the HIIClient.log as well to original post.