I spent the day playing with a .bat file to update lab computers from iTalc 1 to iTalc 2 in Windows XP. The supplied info above is great up until you hit the .bat file instructions. If you don't register the ica service before having imc apply the settings it has no idea what to do with itself. On your reference install machine use regedit to export the key "HKLM\SOFTWARE\iTALC Solutions" and save that as italc2.reg. Place the reg file in the same network deployment folder as the Clientsettings.xml file.
Here are the lines from the two .bat files I created.
Uninstall iTalc 1
c:\progra~1\italc\ica.exe -unregisterservice -quiet
reg delete "HKLM\SOFTWARE\iTALC Solutions" /f
reg delete "HKCU\SOFTWARE\iTALC Solutions" /f
rd /s /q c:\progra~1\italc
Install iTalc 2
mkdir "C:\Program Files\iTALC"
copy "\\pathtonetworklocation\*.*" "C:\Program Files\iTALC\"
cd "\Program Files\iTALC"
ica -RegisterService -quiet
imc -ApplySettings clientSettings.xml -quiet
regedit /s italc2.reg
ica -StartService -quiet
