I was wrong about the write access, but after some more searching, this seems to be an explanation:
http://support.microsoft.com/kb/889710MsiExec doesn't require write access, but it does require exclusive access (as you can see from the logs). The NETLOGON share does not support exclusive access.
Are you trying to set up a distribution share for MSI packages? Why not create a separate DFSR group for it to have it replicate, and access your packages from there?
That was also the solution here:
http://www.experts-exchange.com/OS/Microsoft_Operating_Systems/Server/Windows_Server_2008/Q_25085430.htmlI actually lol'd at "Consider the following scenario".
Thanks.