Currently have SCCM setup and working properly. Trying to install DDP and it is constantly failing. Looking at the _installer.log i'm finding that it fails when trying to create a folder. It is locating the site code properly and the reg key for UI is empty as it should be. I have also tried creating the new tranform file as mentioned previously, but that is not working either. Any help is appreciated.

I am not sure which version of DDP you are trying to install. If you are trying to install DDP1.0 or DDP1.1, it will not install since SCCM SP2 uses WinPE 3.0. You can use DSDP 1.2, which works with both SCCM SP1 and SP2.

You can download from here:
http://support.us.dell.com/support/downloads/download.aspx?c=us&cs=555&l=en&s=biz&releaseid=R261329&formatcnt=0&libid=0&typeid=-1&dateid=-1&formatid=-1&source=-1&fileid=383730

You probably already know this, but make sure you right click, then "Run as Administrator" for it to work correctly. You'll need to do this even if you are an admin on the box.