Scott,
We do product packaging between instances here at our site on a continuous basis and have seen this problem quite often.
First, is this your first attempt or has this been done successfully at this site before? If you have been successful before, make sure you are using the same login id's. We find the JDE login for all parts of the process to be the most predictable.
Second, did you name the update package and the product package the same name? If not, you will have problems.
Third, when you build the update package make sure you have the second processing option for the package build application set to 1 for Mastering. This can be easy to miss if you run it straight from the Package Assembly application. I highly recommend returning to the GH9083 menu and running Package Build itself, checking the processing options. Also, make sure you change this processing option back for building packages not to be product packaged.
Finally, there are several little steps during the package build creation that I find especially helpful in getting success:
1 - Always check the jdeb7.mdb database created for the product package to ensure it has data. I extract the database created on the local machine in PPNAME/PLANNER/DATA.CAB just to be sure. You will need winzip to do this.
2 - Take your time on the CD revisions window! After EACH step, I go to the Build Steps tab and press VIEW|REFRESH and then go to the CD Information tab and press VIEW|REFRESH. After you Master CD, do this one last time and press OK. Otherwise the status of your PP will not be built successfully. It's tedious, but it works.
3 - Often when I have the issue you are having, I go back and start over with building a new update package (with a different name), create the product package, and it works.
Once you do get it working, do the same thing EVERY time...same machines, same logins to network & oneworld. You will have much better luck.