About the Error

This error occurs if you are trying to install an earlier operating system in the Windows Preinstallation Environment (Windows PE) 2.0. The error may occur if the system has two or more raw disks, or if you are deploying an earlier operating system using Microsoft System Center Configuration Manager (SCCM) 2007.

How I solved the code 0x80004005 error

Microsoft has a hotfix at http://support.microsoft.com/hotfix/KBHotfix.aspx?kbnum=945783&kbln=en-us to resolve this issue. Download and install the hotfix, manually extract the files to a temporary location. To mount the Winpe.wim file, run the Imagex.exe tool using this command: IMAGEX.EXE /mountrw Path of the WinPE .WIM 1 Staging area and then copy the new Winload.exe file and Winresume.exe file to the System32/boot directory of the mounted Winpe.wim file. Then copy the new Setbcdlocale.dll to the System32 directory. To unmounts Winpe.wim, use the Imagex.exe tool with / commit syntax on this command: IMAGEX.EXE / commit

TipFor more information, please see: How to fix Update error #0x80004005