Sorry about the huge title. :)
I was recently installing the Windows 7 beta on my laptop using VMWare and ran into the following error:
Windows could not collect information for [OSImage] since the specified image file [install.wim] does not exist.
I was watching Fringe (great show) and tried a few reboots of the Virtual environment during the commercial breaks. When I realized that this method would not work I decided to burn the Windows 7 image file onto a disc (I was trying to install directly from the .iso). To be on the safe side I burnt the .iso at 4X speed and made sure that the disc was verified.
And it worked! So if you get this error one possible solution is to burn the .iso onto a disc at a slow speed.
Hope that helps.