I haven`t seen this error but I did a quick google search for "Error communicating with PsExec service" and it revealed the following sysinternals forum thread: http://forum.sysinternals.com/topic1045_page1.html
Look at the several ideas and solutions in that thread. Some seem to say it`s because of an Anti-Virus application while some other users say this error shows up because there is a PsExec service running on the target server.
See if this helps your case.
Actually, the PSEXESVC was running on the box. After I killed the process, the installation ran successfully.
Thanks for the assist!
The problem I am now seeing is the C:\Windows\RSC directory is not being created to put our custom users.local file.
Are you supplying the Administrator username and password in the bulk agent installer job?
If so, check to make sure the username you supplied has appropriate permissions on the target server to read and write to C:\WINDOWS directory.