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We blogged this issue a couple weeks ago but now there’s a hotfix available to resolve the issue:
Consider the following scenario:
In this scenario, the task sequence does not run on the client computer.
Note This issue does not occur if the task sequence is assigned as an optional advertisement.
This issue occurs because the large number of Installing Software steps in the task sequence creates a heavy workload for the location service. When the location service has a heavy workload, it cannot process all the callbacks for the location requests in a 10-minute window. Therefore, the issue that is mentioned in the "Symptoms" section occurs.
For all the details as well as a download link please see the the following Knowledge Base article:
KB2516517 - Task sequence does not run if it has lots of Install Software steps in System Center Configuration Manager 2007 SP2
J.C. Hornbeck | System Center Knowledge Engineer
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