Hello Dwayne and welcome to the board.

The batch file is the problem... I think

Try putting a PAUSE in the batch to see if it is even running.

However, you don't even need to copy or use the batch file. If you want to run that command you can run it from KiXtart.

Try something like this...
code:
$RunNotes='"\\%server%\software\Notesr5-10\Clients\Setup.exe -s -f1 setup.iss"'
RUN $RunNotes