Sysprep 3.14 crashes – Computer Setup Hangs On Starting Services

The other day i was asked for some help with a brand new computer.
The problem with the machine was sysprep, it booted fine into Windows 7 but showed the sysprep window every time.
So let’s sysprep it again and let it reboot.

But instead of rebooting it showed a little error message:
” A Fatal Error occurred while trying to sysprep the machine “

After a manual reboot the machine hangs at the Setup Starting Services screen.

The following steps gave me back my Windows 7 without futher problems:

  1. When the error message apears, open up a CMD window with SHIFT + F11
  2. Open the REGEDIT
  3. Navigate to hklm\system\setup
  4. Change CmdLine to blank (no value entered) (was oobe\windeploy.exe)
  5. Change CreateNewQueueOnFirstBoot to 0 (was 1)
  6. Change OOBEInProgress to 0 (was 1) change SetupPhase to 0 (was 4)
  7. Change SetupShutdownRequired to 0 (was 1)
  8. Change SetupType to 0 (was 2)
  9. Change SystemSetupInProgress to 0 (was1)
  10. Exit REGEDIT and reboot

I my case i didn’t know the local administrator account password so i started i safe mode to add a new local user with administrative privileges.

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