When you run vLite on a x86 Windows (Windows XP, Windows Server 2003 32Bit, Windows Vista 32Bit, Windows Server 2008 32Bit) you'll see the prompt "Install WAIK" again. vLite 1.2 has a bug which prevents the detection of the WAIK.

Solution:
You have to copy wimgapi.dll from Program Files\Windows AIK\Tools\x86 to the vLite folder