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Verify that the source exists and that you can access it.' It exists and I can access it. (tried setting from the answer by @Evan Anderson, but it wasn't until I added this setting below as well that allowed the software to install.
It will reboot and you should see the software installation occur.
The "Always wait for the network at computer startup and logon" slightly slows down the startup and logon because all GPO extensions are allowed to process, but the upside is that all GPO extensions are allowed to process.
It's not a "feature" (and was default-off in Windows 2000 but default-on in Windows XP and above) and causes exactly what you're seeing-- non-deterministic behaviour with processing some types of GPO settings.
In a GPO that applies to that computer, add the following setting: After you set that (and allow the GPO to replicate if you're in a multi-DC environment), do a "gpupdate /force /boot" on the subject PC.