So as an second development, I followed the directions to completely remove drivepool, including the reg keys, etc. I then rebooted and reinstalled. Once it was installed, the covedisk tries to install and fails again.
I am not sure why drivepool causing me these headaches just swapping to a new boot disk. Happened on the previous one too. I rebuilt windows and it was fine again. It simply should not react like this simply by swapping the boot disk to a new one.