First things first, I must give credit where credit is due. If it wasn’t for this blog post by Alex Verboon, I would have never figured this problem out.
Just like Alex, I had an issue with a deployment package – it was red and had an error. I decided to remove the deployment and distribute it back to the DP. From this point on I got very frustrated as the package would NOT deploy! I couldn’t even get it to show up on the content status page as failed or in progress. No matter how many times I tried to deploy it – it would act like I never even attempted to deploy it to the DP.
Following the page linked above, I looked in the distmgr.log file and found that I was receiving an error each time I tried to distribute it. I would get very similar errors to this:
“The source directory \\<servername>\swupd$\workplace\win7upd\10606ddb-3d74-4df9-bf55-0fa26238a7c0 doesn’t exist or the SMS service cannot access it, Win32 last error = 2”
At this point I highly recommend following the link above and using Alex’s detailed notes and instructions to clean up the mess. Basically you have an update that is corrupt and will need to be deleted then re-downloaded.
HOWEVER, for me, I had to do this for almost ALL of my updates! Every time I re-downloaded an update and re-ran the distribution, I would get a new one in the log. I did this several times (as only one shows up at a time) before I got fed up and just deleted all of the updates from the catalog and then re-downloaded them all (well, only the ones I needed).
After all of this I was finally able to distribute the content to my DP.