JSI Tip 4039. RIS install error - 'Setup cannot find a previous version of Windows installed on your computer'?

When you start to install Windows 2000 Professional from a RIS image, you receive:

Setup cannot find a previous version of Windows installed on your computer.
To continue, Setup needs to verify that you qualify to use this upgrade product.

Please insert your Windows NT 3.51 Workstation, Windows NT 4.0 Workstation, Windows 95, or Windows 98 CD into your CD-ROM drive. When the CD is in the drive, press ENTER. To quit Setup, press F3.

If you insert the CD and press Enter, you receive:

Setup cannot format the partition.

Your computer may not have enough memory to perform this operation, or your Windows 2000 CD may contain some corrupted files.

Setup cannot continue. To quit setup, press F3.

If you created the RIS image from Microsoft MSDN media, the above is expected behavior.

You must remove the MSDN CD image from the RIS server and use a retail copy of Windows 2000 Professional.

NOTE: You will experience the same problem with RIPREP images if your RIS server has a MSDN version of Windows 2000 Professional as the CD-based image.