Just wanted to update all that I ran into this exact problem again. Though I can contnue to load old images, make the change, then capture new image. If I wait some time and try to capture the image again it fails. I have now tried the following
chkdsk
defrag
edit the init file
update to the latest version of Fog
stll no luck “Could not adjust the bad sector list” continues to cause me issues, anyone have any ideas?
