vlite 1.1.6 or 1.2 Errror will not mount image file

I was using a corporate verison of xp sp3 and had no issues running vlite, installed vlite on an older machine running xpsp3 OEM and I get error: can not mount image file. I read many forum entries including msfn forum and tried all the fixes to no avail. I have loaded 1.16 first or just tried 1.16 and it did not read image file. I loaded 1.1.6, then 1.2 and it will not read image file. I load vlite, load wimfilter, no work. Delete wimfilter, reboot, no work. Checked folder permissions, read/write not an issue, i believe. Not sure what to try next? Do you need more info?