Client Package Install problem

I have a strange problem that popped up in the last couple of months. I am running OW Xe,Update 2, SP21_G1, AS400 V5R2...I applied the SP when it was released last year. Peoplesoft does not know what is going on? When I run Setup.exe to install a Client package to a fat client or TSE via silent or manual the SPEC.cab file is extracted but the SPEC2.cab file is not. This has been working fine up until January...I have not applied any ESU's or ASU's. Has anyone seen this before...I built a new deployment server with all new files and reapplied SP21_G1...still does the same thing! If anyone has any ideas please let me know. Thanks,
--glenn

Glenn,

I'm sure you've ask this question, but just in case:

What changed (in all systems, PSE1, network, Op System etc.) in January?

Another 'just in case': have you built a new Full package since building the new DS?

The things that have changed is DNS/WINS servers, windows security updates, etc. Nothing that I have been able to pin the cause on. I tried taking a fresh WIN2K workstation with no updates...and still the same result. ?????