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I have the same problem with network drives on XP and a local drive (not C on vista. In other words, I have a problem with every iso I have tried. The latest version I have that works (but not on vista) is 4.09.1.
I am just giving vista another try now that it is more mature, but daemon is more important to me than vista. So looks like back to XP for a while.
So what I will do is format my pc and installl Windows Vista, then I will try again. If that doesn't work, then I will install Vista's Service Pack 1, hopefully it work by then. I will add a post here saying whether it works or not.
DT-Lite v4.1, DT v3.47, and Virtual CloneDrive are all able to mount the network image without issue... so, it appears to be something that changed in DT-Lite v4.30.1. For now I am using CloneDrive, but I will keep installing new versions of DT-Lite and post here if it starts working again.
Please just read the thread.. all questions have been answered, by administrators also.
DT-Lite v4.1, DT v3.47, and Virtual CloneDrive are all able to mount the network image without issue... so, it appears to be something that changed in DT-Lite v4.30.1. For now I am using CloneDrive, but I will keep installing new versions of DT-Lite and post here if it starts working again.
For 2000 this is known issue with Lite version, and will be fixed with next version currently in beta test stage, with Pro version it is already fixed with build 303.
I do have the same problem: on my Win2000 machine, mounting images is only possible when the image is stored in the root directory of a drive (e.g. C: or D: for harddiscs, or E: for dvd).
Because i do not want to copy an image everytime i want to use one, i wrote a tiny program that uses the subst command to create a virtual device (which may be connected to any directory on a physical drive) and then uses the command line switches for deamon tools to mount a user specified image.
The question is: am i allowed to post a link to a program that does not belong to the daemon tools project in any case?
I just started seeing this problem too... after switching to Vista (x86 - 32bit). I was using XP (MCE2005). Both the XP and Vista installs had/have DT-Lite v4.30.1 installed, and both are connecting to the same Vista machine that is hosting ISO files (no changes on the ISO server side). The upgrade from XP to Vista was a full reformat/fresh install.
It is strange because if I right click on DT-Lite and choose "Mount Image", I can browse all the way to the network share (let's call it '\\server\ISOs\MyIso.iso'), select the file, and then I get the error... Also, using UltraISO on the same Vista client, I can open the \\server\ISOs\MyIso.iso and browse through the contents of it (extract files, and even burn it to disc).
Perhaps DT-Lite is expecting some form of file lock or sharing mode on the ISO that is not available through shared folders in Vista.
Also, mounting the network share as a drive does NOT fix the problem.
Is this something that would work if I purchased DT-Pro?
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on vista. In other words, I have a problem with every iso I have tried. The latest version I have that works (but not on vista) is 4.09.1. 
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