Posted By Windows Embedded Team
In Standard 8, if you use Create Media from Image Configuration Editor (ICE), then create an .ISO from that media, you will not be able to use that .ISO to install Standard 8 on a device. Instead, you will get an error stating "Windows Setup failed to open catalog". This is because the media created by ICE is not designed to create an .ISO and thus does not include the .LOCK file that is required to created "locked" copies of the catalog database files.
As a workaround, before creating the .ISO from the media file created by ICE, copy the .LOCK file located in C:\Windows Embedded Catalog\.lock, then proceed to create or burn the .ISO. This .LOCK file can also be located on the Windows Embedded 8 Standard DVD in the *\Catalog\.lock directory.