Before this error, there is also a warning that smartdrv spits out:
Warning: Unable to use a disk cache on the specified drive
disregard this error. it's because you haven't partitioned/formatted it yet.
is the machine hostname name actually "bl-demo-env"? or are you aliasing it via the hosts file? i'm assuming this is also a windows based datastore? 2k3? sp level?
It turns out the error is caused by an interesting combination of conditions.
1. The drive you want to map to is on a Win2k3 Server.
2. The system you are mapping from is Win98 (i.e., blade.img).
3. The pxestore password is incorrect.
Instead of telling you that your password is incorrect you get this cryptic Error 58. There are probably other ways to cause this error, but this is what triggered it for me.