sysprep – a fatal error occurred

I’m currently testing out Windows Deployment Services, and while working with sysprep on a Windows 7 Pro client machine, I got the following error:

sysprep error

Nothing seemed to work, till I tried the following recipe:

Open the run-menu, type in regedit and go to HKEY_LOCAL_MACHINE\SYSTEM\Setup\Status\SysprepStatus. Find GeneralizationState and set the value to 7.

Run a command prompt with administrative privileges. Type:

msdtc -uninstall
msdtc -install

Open up regedit again and find HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\SoftwareProtectionPlatform. Find SkipRearm and set the value to 1.

net stop WMPNetworkSvc

Try running sysprep again now. Hopefully it should work. That’ll save you some time of frustration and hopefully you won’t go bald sooner.

Should this not work, check the sysprep-log file at C:\Windows\System32\Sysprep\Panther\setuperr.txt.