bcstring, yes now the machine just hangs at the windows startup screen, this is actually after I hit f8, choose WinPE Menu, its loads the boot.wim file, then hangs here. I have a T5730 which is running the same os, and pretty much same hardware as the T5740. The T5740 is newer so if the old model works I dont see why this model wouldnt. I also looked under the device manger to see what drivers the network on disk drive was using. I injected the drivers in the boot.wim like your link showed and still hangs at the win 8 screen.
tanner I cannot add more ram to it. I dont think its a RAM issue as I can get it to work on the another model of thinclient that has the same ram and same hd size.
Thank You everyone for all your help and suggestions!!