OSD Task Sequence fails to restore user state data with Error getting system isolation info. Code 8027000C

I’ve been hitting a USMT issue I can’t get around. Can someone assist me with this issue?

 
The following lines are what i’m seeing in the smsts.log

Checking if CCM component System Health Agent is paused TSManager 05/20/2012 2:28:29 PM 284 (0x011C)
Failed to pause component System Health Agent (80040200) TSManager 05/20/2012 2:28:29 PM 284 (0x011C)
Remediating TSManager 05/20/2012 2:28:29 PM 284 (0x011C)
Error getting system isolation info. Code 8027000C TSManager 05/20/2012 2:28:29 PM 284 (0x011C)
Remediation failed. Code 8027000C TSManager 05/20/2012 2:28:29 PM 284 (0x011C)
Remediation failed with error code 8027000C TSManager 05/20/2012 2:28:29 PM 284 (0x011C)
Parsing task sequence . . . TSManager 05/20/2012 2:28:29 PM 284 (0x011C)
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then further down the log i see the following:
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==============================[ OSDSMPClient.exe ]============================== OSDSMPClient 05/20/2012 2:29:04 PM 2884 (0x0B44)
Command line: "osdsmpclient.exe" /release OSDSMPClient 05/20/2012 2:29:04 PM 2884 (0x0B44)
Environment variable OSDStateRequestType is not set. OSDSMPClient 05/20/2012 2:29:04 PM 2884 (0x0B44)
OSDSMPClient finished: 0×00004005 OSDSMPClient 05/20/2012 2:29:04 PM 2884 (0x0B44)
Process completed with exit code 16389 TSManager 05/20/2012 2:29:04 PM 284 (0x011C)
!——————————————————————————————–! TSManager 05/20/2012 2:29:04 PM 284 (0x011C)
Failed to run the action: Release State Store.
Unknown error (Error: 00004005; Source: Unknown) TSManager 05/20/2012 2:29:04 PM 284 (0x011C)

Thanks