First, it is extremely important to understand what Sysprep is intended to do and who it is intended to be used by. The System Preparation (Sysprep) tool prepares an installation of Windows for duplication, auditing, and customer delivery. It would be wise to refrain from issuing a Sysprep command in the future without first familiarizing yourself with the following references:
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What is Sysprep?
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How Sysprep Works?
I have attempted to replicate your scenario on my own system and am unable to produce the same error under similar circumstances. I went searching for a few more potential solutions and came across
this thread on the TechNet forums. As you can see, Gandalf50 recommends checking the following logs: setupact.log and setuperr.log. To access these logs quickly, go to start, type in ‘run’ and then type in the following commands:
%windir%\system32\sysprep\panther\setupact.log
and
%windir%\system32\sysprep\panther\setuperr.log
As Gandalf50 proceeds to state in a later comment, the image may be corrupt as sighted in
this Microsoft Knowledge Base article if you see the following error message in the setuperr.log:
Date Time, Error [0x0f0073] SYSPRP RunExternalDlls:Not running DLLs; either the machine is in an invalid state or we couldn't update the recorded state, dwRet = 31
Just as a side note, in any documentation you may read you will want to refrain from using the /generalize pass. The sysprep /generalize command removes unique information from your Windows installation, which enables you to reuse that image on different computers – which is not what you intend to do.
I realize that you want to resolve your issue without performing a clean install however the more we dive into the problem you are experiencing, the more the signs point to needing to do just that.
Please check your error logs and consider what has been stated in the KB article and thread mentioned above.
Jessica
Windows Outreach Team – IT Pro