What desktop OS? Are you using the VCSA? If so, have you copied the sysprep files to it?

OS is Windows 7, no VCSA. I have a parent machine which I've been using for different kinds of testing, everything works with Quickprep.  This time I decided to go with Sysprep and created a new spec in vCener Customization Spec Manager.

I've never heard of "to_be_default", but a quick google search shows... Here's how to create a Default Profile in Win 7 without using SysPrep and avoiding issues

Are you sure this wasn't implemented by someone in your org on your parent/template image? Maybe create a new template from a clean ISO and try it again to see if it's the spec or the image.

I have a parent machine with a default profile which I modified slightly, but there are no other accounts on the machine other than Administrator, it is a domain machine  I am the only person who is working with View, it is still in testing phase. As I mentioned everything works fine with Quickprep, I created dozens of various pool.  It happens only when I try to use Sysprep as follows, as simple as it gets.  Please take a look.

http://matavesi.com/harlan/?p=249

I found the problem.  It is because I modified default Windows profile by copying files and changing permission.  It is a bad idea.  The only clean way to do it is Sysprep.  Any other way will give you a headache sooner or later.