Thank you for the reply Leo.  In regards to not updating the IOS, I did read the same thing.  I am still curious why it would not update the vstack status to reflect that.  Also, it does not update the config.  Right now, the config txt file is just setting the hostname to something different. 

Although the process does not start automatically, I can run the commands to do it manually.

vstack-director#$load-config built-in 2960x 48-2sfp-poe NONE startup
Startup config of Clients will be replaced. proceed?[confirm]
vstack-director#
Feb 25 20:48:16.121: %SMI-6-UPGRD_STARTED: Device (IP address: 10.1.206.255) startup-config upgrade has started

Feb 25 20:18:02.796: %PNP-6-HTTP_CONNECTING: PnP Discovery trying to connect to PnP server https://devicehelper.cisco.com/pnp/HELLO got vend id vend spec. info ret: succeed
Loading 2960x_48p_base.txt from 10.1.18.50 (via Vlan5): !
[OK - 20 bytes]

Feb 25 20:47:27.567: %SMI-6-UPGRD_STARTED: Device (IP address: 10.1.206.255) startup-config upgrade has started
Feb 25 20:47:36.920: %SYS-5-CONFIG_NV_I: Nonvolatile storage configured from tftp://10.1.18.50/2960x_48p_base.txt by console
Feb 25 20:47:38.074: %SMI-6-UPGRD_SUCCESS: Device (IP address: 10.1.206.255) startup-config has upgraded successfully

vstack-director#sh vstack status
SmartInstall:  ENABLED

Status: Device_type Health_status Join-window_status Upgrade_status
Device_type:  S - Smart install N - Non smart install P - Pending
Health_status:  A - Active I - Inactive
Join-window_Status:  a - Allowed  h - On-hold   d - Denied
Image Upgrade:   i - in progress     I - done           X - failed
Config Upgrade:  c - in progress     C - done           x - failed
Script Upgrade:  p - in progress     P - done           F - failed
Director Database:
DevNo  MAC Address     Product-ID         IP_addr          Hostname    Status
=====  ==============  =================  ===============  ==========  =========
0      d072.dced.1d80  WS-C3750X-12S      10.1.196.254     vstack-dir  Director
1      381c.1a56.bc00  WS-C2960X-48LPD-L  10.1.206.255     Switch      S A a  C
2      b8be.bfc4.4800  WS-C2960S-48LPS-L  10.1.196.111     GigAccess.  S A a

Regarding the vlan.dat file - When I reset I am sure to remove that file as well.  You may notice some stuff about vlan5.  I am using vlan5 because this is an open vlan in our network and the goal of this process is for another system to be able to access these switches.  My vstack config should show the 'vstack startup-vlan' as vlan 5 - which it is setting.   If I 'return' on the client switch and do a 'sh int status' I am able to see the director successfully updated the vlan to vlan5 on the client switch.

vstack vlan 5
vstack config tftp://10.1.18.50/2960x_48p_base.txt

I've compared your VStack configuration against my production VStack switch and they are identical (except for the IP Address and the model of your switch).

The only thing that caught my eye, and I"m not sure if this is a type-o in your part, is the second line above.  It doesn't make sense and could be a bug.  I am suspecting you cannot just remove that offending line so you'll need to take the entire VStack configuration off and enter it back again but without the line there.  

Also, it does not update the config.  Right now, the config txt file is just setting the hostname to something different. 

Sorry, what I meant was make sure sure the 2960X doesn't contain any config.text or VLAN.dat file.  The only file that should be in the 2960X is the IOS (and two other associated files) and nothing else.

The 'vstack config ...' line is there from testing I was trying to do - originally thinking something was wrong with my vstack group configuration, this should have applied that config to all switches.  Here is the last half of show run with that removed now.

!
interface Vlan1
 ip address 10.1.196.254 255.255.252.0
 no ip route-cache
!
ip default-gateway 10.1.196.1
ip forward-protocol nd
!
no ip http server
ip http secure-server
!
!
!
!
!
tftp-server flash:client_cfg.txt
!
!
vstack vlan 5
!
vstack group built-in 2960x 48-2sfp-poe
 image tftp://10.1.18.50/c2960x-universalk9-tar.152-3.E.tar
 config tftp://10.1.18.50/2960x_48p_base.txt
!
vstack group built-in 3560cg 8-pd-poe
 image tftp://10.1.18.50/c3560-ipbasek9-tar.150-2.SE7.tar
 config tftp://10.1.18.50/2960x_48p_base.txt
!
!
vstack dhcp-localserver pool1
 address-pool 10.1.204.0 255.255.252.0
 file-server 10.1.18.50
 default-router 10.1.204.1
!
vstack director 10.1.196.254
vstack basic
vstack startup-vlan 5
!

Here is a flash directory listing of the switch (yes, it does get to the standard out of box screen when I hit my first return)

Switch#
Switch#dir flash:
Directory of flash:/

  672  -rwx        1048  Feb 26 2015 15:46:22 +00:00  multiple-fs
    3  drwx         512  Feb 24 2015 22:44:22 +00:00  c2960x-universalk9-mz.152-3.E
  670  drwx         512  Feb 24 2015 22:44:24 +00:00  dc_profile_dir

122185728 bytes total (92985856 bytes free)
Switch#

I also cleared out the director DB since I had forced the config update:

vstack-director#sh vstack status
SmartInstall:  ENABLED

Status: Device_type Health_status Join-window_status Upgrade_status
Device_type:  S - Smart install N - Non smart install P - Pending
Health_status:  A - Active I - Inactive
Join-window_Status:  a - Allowed  h - On-hold   d - Denied
Image Upgrade:   i - in progress     I - done           X - failed
Config Upgrade:  c - in progress     C - done           x - failed
Script Upgrade:  p - in progress     P - done           F - failed
Director Database:
DevNo  MAC Address     Product-ID         IP_addr          Hostname    Status
=====  ==============  =================  ===============  ==========  =========
0      d072.dced.1d80  WS-C3750X-12S      10.1.196.254     vstack-dir  Director
1      381c.1a56.bc00  WS-C2960X-48LPD-L  10.1.206.255     Switch      S A a
2      b8be.bfc4.4800  WS-C2960S-48LPS-L  10.1.196.111     GigAccess.  S A a

vstack-director#

Press RETURN to get started!


*Mar  1 00:00:29.391: Read env variable - LICENSE_BOOT_LEVEL =
Mar 30 01:27:38.153: %IOS_LICENSE_IMAGE_APPLICATION-6-LICENSE_LEVEL: Module name                                                                          = c2960x_lanbase Next reboot level = lanbase and License = lanbase
Feb 26 16:18:52.090:  in Switch 0. Cannot read pid from Flexstack module

Feb 26 16:19:42.391: %STACKMGR-4-SWITCH_ADDED: Switch 1 has been ADDED to the st                                                                         ack
Feb 26 16:19:43.715: %LINEPROTO-5-UPDOWN: Line protocol on Interface Vlan1, chan                                                                         ged state to down
Feb 26 16:19:43.715: %LINEPROTO-5-UPDOWN: Line protocol on Interface FastEtherne                                                                         t0, changed state to down
Feb 26 16:19:46.043: %SPANTREE-5-EXTENDED_SYSID: Extended SysId enabled for type                                                                          vlan
Feb 26 16:20:08.846: %STACKMGR-5-SWITCH_READY: Switch 1 is READY
Feb 26 16:20:08.846: %STACKMGR-4-STACK_LINK_CHANGE: Stack Port 1 Switch 1 has ch                                                                         anged to state DOWN
Feb 26 16:20:08.846: %STACKMGR-4-STACK_LINK_CHANGE: Stack Port 2 Switch 1 has ch                                                                         anged to state DOWN
Feb 26 16:20:10.737: %STACKMGR-5-MASTER_READY: Master Switch 1 is READY
Feb 26 16:20:11.223: %SYS-5-RESTART: System restarted --
Cisco IOS Software, C2960X Software (C2960X-UNIVERSALK9-M), Version 15.2(3)E, RE                                                                         LEASE SOFTWARE (fc4)
Technical Support: http://www.cisco.com/techsupport
Copyright (c) 1986-2014 by Cisco Systems, Inc.
Compiled Sun 07-Dec-14 12:57 by prod_rel_team
Feb 26 16:20:12.670: %LINK-3-UPDOWN: Interface FastEthernet0, changed state to d                                                                         own
Feb 26 16:20:13.670: %LINEPROTO-5-UPDOWN: Line protocol on Interface FastEtherne                                                                         t0, changed state to down
Feb 26 16:20:13.834: %USB_CONSOLE-6-MEDIA_RJ45: Console media-type is RJ45.
Feb 26 16:20:16.067: %LINK-3-UPDOWN: Interface GigabitEthernet1/0/1, changed sta                                                                         te to up
Feb 26 16:20:17.070: %LINEPROTO-5-UPDOWN: Line protocol on Interface GigabitEthe                                                                         rnet1/0/1, changed state to up
Feb 26 16:20:25.774: %LINEPROTO-5-UPDOWN: Line protocol on Interface Vlan5, chan                                                                         ged state to down
Feb 26 16:20:25.812: %SYS-5-CONFIG_I: Configured from console by tty17
Feb 26 16:20:55.815: %LINEPROTO-5-UPDOWN: Line protocol on Interface Vlan5, changed state to up
Feb 26 16:21:00.821: DHCP: No configured hostname - not including Hostname option
Feb 26 16:21:07.975: %DHCP-6-ADDRESS_ASSIGN: Interface Vlan5 assigned DHCP address 10.1.206.255, mask 255.255.252.0, hostname
 got vend id vend spec. info ret: succeed
Feb 26 16:21:39.723: %PNP-6-HTTP_CONNECTING: PnP Discovery trying to connect to PnP server https://devicehelper.cisco.com/pnp/HELLO
Feb 26 16:22:17.769: %PNP-6-HTTP_CONNECTING: PnP Discovery trying to connect to PnP server https://devicehelper.cisco.com/pnp/HELLO

Based on that, the zero-touch install is not starting.  Leading me back to like a DHCP issue - but not sure what since my config looks fine.  I have also tested on a 4500X as a director with no luck.

Wait a minute ... Why is the 2960X getting the correct time and date?

Can you try loading an OLD version of an IOS to the 2960X and try again. 

Reboot the VStack director too. 

Another thing ... Your IP address, can you confirm the subnet you're using is NOT routed or being used anywhere else?

Hi Leo,

I wanted to update you with the good news, I got it working!  After going through things again here are the changes I made:

• Add interface Vlan5 to the director switch with an IP in the subnet (10.1.204.2)
• Removed the ip-helper on vlan 5 (on the core) pointing back to the director - this is to help keep all the trafic local.
• Change the vstack director from 10.1.196.254 (vlan 1 int ip addr) to 10.1.204.2 (vlan 5 address)

If you have any other questions feel free to ask.

Add interface Vlan5 to the director switch with an IP in the subnet (10.1.204.2)

Ok, I totally missed that.  

Good of you to find out where it went wrong!