If you create a deployment for Raster Design 2012 and notice that it hangs when installing at the initialization phase, please ensure that you have created the deployment on a system where the products Raster will be targeting are available. This will allow a Raster Design deployment to correctly target the 2012 applications at install time.
In order to troubleshoot this behavior, you can modify the deployment to run in non-Silent mode and then observe whether it progresses beyond the initialization phase or if it hangs. To correct this, run the 'Create & modify a deployment' shortcut from the Tools directory on a machine which has the target applications installed. This will update the Raster Design deployment so that it can now correctly target the host applications. When modifying the deployment, you can also switch it back to Silent mode.
Alison
This information made absolutely NO sense to me, but I did find the issue. The shortcut that was created to deploy the image is pointing to an .ini file on the drive letter:\path of the server instead of ServerShareName\path\...ini.
Just edit that and all works correctly.