[syslinux] menu.c32 error "Windows is bypassing your startup files"

[Franga .]

Hey,
  Firstly i like to say good work on your project, I love the ability to use 
PXE to ghost all my machines without the use of floppy disks.

Now i managed to setup PXE correctly using a copy of Barts Boot Disk's with 
ModBOOT and modified it to meet our company needs. This works perfect and i 
can ghost not a problem using the standard loader prompt

boot:

and inserting text depending on which image i wish to load from TFTP.

Now i moved to my next step of trying to get Simple Menu's working. My 
problem occurs after selecting a menu option. The image loads and gives me 
this output:

command line: initrd=images/c201.img BOOT_IMAGE=memdisk
Disk is floppy, 1440 K, C/H/S = 80/2/18
Total size needed = 1491 bytes, allocating 2K
Old dos memory at 0x9f000 (map says 0x9f400), loading at 0x9e800
1588: 0xffff  15E801: 0x3c00 0x3e66
INT 13 08: Success, count = 1, BPT = f000:98a9
old: init13 = f0008590 init15 = f000f859
new: init13 = 9e800008 init15 = 9e80027c
Loading boot sector... booting...
Starting Windows 98...

Windows is bypassing your startup files.

Microsoft(R) Windows 98
   (C)Copyright Microsoft Corp 1981-1999

A:\>


Any idea's why this is not booting my proper image? Here is my configuration 
file:

PROMPT 0
DEFAULT menu.c32
TIMEOUT 100
ONTIMEOUT .localboot -1

MENU TITLE ITNET 2006 Boot Menu

LABEL local
    MENU LABEL ^Local Boot
    MENU DEFAULT
    LOCALBOOT 1

LABEL ghost
    MENU LABEL ^Ghost
    KERNEL memdisk
    APPEND initrd=images/c201.img

label test
    MENU LABEL ^C201
    KERNEL memdisk
    APPEND initrd=images/c201.img keeppxe

label test2
    MENU LABEL ^C201
    KERNEL memdisk
    APPEND initrd=images/c201.img floppy



Any Idea's would be great i would love to get this done before Monday as 
students will be ariving.

Thanx,
- Zen