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MDT 2013 Update 2 - USMT5 - Capture User State Fails - CNAME LOOPBACK DETECTED

Hello,

Very much an MDT newbie but have been following the technet article for building and deploying Windows via MDT. I've got deployment working how I'd like with Windows installing, driver injecting based on model, Software installs, etc. 

Now I'm attempting to catch the user state of a machine prior to pushing the image and restoring the data. On the client machine I run \\MDT01\ProductionShare\Scripts\Litetouch.vbs, select the Replace task Sequence, set the Network path for user data to \\MDT01\MigData$\PC1, don't configure a backup and finish the wizard. 

I can see it start to attempt the user state copy but it fails very quickly and I'm left with the error:

Failed to run the action: Capture User State. 
CNAME loop detected. (Error: 000025EB; Source: Windows)

Can anyone help?

Thanks


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