The Smsts.log File
After checking deployment status, the next place to look when troubleshooting is the smsts.log on the target system. This client side log file lives in various places depending on the stage of the deployment, as listed in Table 19.4. The smsts.log file is a detailed log of every task sequence related action that takes place on a target system. It usually indicates exactly why a task sequence fails and reviewing it is the single most important step in troubleshooting a task sequence: when in doubt, check smsts.log.
You might also want to check http://blogs.technet.com/inside_osd/archive/2007/12/13/troubleshooting-tips.aspx ...
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