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It would appear from the logs that some file is not accessable that sysprep needs, but which I am not sure. I looked at my toolsDeployPkg.log and it states that all files were transfered successfully:

1. Starting deploy pkg operation

Extracting C:\WINDOWS\TEMP\vmw1.tmp to C:\WINDOWS\TEMP\vmw2.tmp

Expanding C:\WINDOWS\TEMP\

Expanding C:\WINDOWS\TEMP\vmw2.tmp\guestcustutil.exe

Expanding C:\WINDOWS\TEMP\vmw2.tmp\imgcust-reboot.exe

Expanding C:\WINDOWS\TEMP\vmw2.tmp\sysprep\i386\$OEM$\bootrun.exe

Expanding C:\WINDOWS\TEMP\vmw2.tmp\sysprep\i386\$OEM$\bootrunMsg.dll

Expanding C:\WINDOWS\TEMP\vmw2.tmp\sysprep\i386\$OEM$\cmdlines.txt

Expanding C:\WINDOWS\TEMP\vmw2.tmp\sysprep\i386\$OEM$\finalizationsetup.bat

Expanding C:\WINDOWS\TEMP\vmw2.tmp\sysprep\i386\$OEM$\finalize.bat

Expanding C:\WINDOWS\TEMP\vmw2.tmp\sysprep\i386\$OEM$\guestcustutil.exe

Expanding C:\WINDOWS\TEMP\vmw2.tmp\sysprep\i386\$OEM$\imgcust-reboot.exe

Expanding C:\WINDOWS\TEMP\vmw2.tmp\sysprep\i386\$OEM$\loginblocker.exe

Expanding C:\WINDOWS\TEMP\vmw2.tmp\sysprep\sysprep.inf

Expanding C:\WINDOWS\TEMP\vmw2.tmp\deploy\setupcl.exe

Expanding C:\WINDOWS\TEMP\vmw2.tmp\deploy\sysprep.exe

Expanding C:\WINDOWS\TEMP\vmw2.tmp\sysprepDecrypter.exe

Package command = guestcustutil.exe customize -sealparam "-quiet -mini -reseal -reboot" -nics 4000 -schedulenativeunobfusc

Running expanded command: C:\WINDOWS\TEMP\vmw2.tmp\guestcustutil.exe customize -sealparam "-quiet -mini -reseal -reboot" -nics 4000 -schedulenativeunobfusc

Command completed with exit code -1

Package deploy was successful

1. Closing log

That being said I see no sysprep.exe or setupcl.exe in the sysprep directory on the VM.

I then look at the guestcust.log and see errors in the last three lines:

Customization in progress set to 1 at 2009-Apr-15 15:50:52

Rpci: Sending request='deployPkg.update.state 4 0 C:\WINDOWS\TEMP\vmware-imc\guestcust.log'

Rpci: Sent request='deployPkg.update.state 4 0 C:\WINDOWS\TEMP\vmware-imc\guestcust.log', reply='', len=0, status=1

Successfully opened key SYSTEM\CurrentControlSet\Control\Session Manager\

Size of reg_multi_sz 21.

Read multi_sz value from registry autocheck autochk *, size 21.

string value from registry autocheck autochk *.

Returning 1 elements

Got BootExecute from session mgr.

Native App sysprepDecrypter.exe, arguments ''

Copied file sysprepDecrypter.exe to C:\WINDOWS\system32\sysprepDecrypter.exe

Updated boot execute value.

Successfully created/opened key SOFTWARE\VMware, Inc.\Guest Customization\

New boot execute:

autocheck autochk *

sysprepDecrypter.exe

System Drive: C:

Deleting directory C:\sysprep if it already exists

Moving directory sysprep to C:\sysprep

select * from win32_networkadapter where Manufacturer != 'Microsoft' and manufacturer is not null and MACAddress is not null

Found 1 objects. Pointer c00318. return code 0(0x0)

Found 1 objects. Pointer c02008. return code 0(0x0)

Found 1 objects. Pointer c00730. return code 0(0x0)

Found 0 objects. Pointer 0. return code 1(0x1)

Returning value 00:50:56:87:39:2A for system property

Returning value 1C:0B:20:52:41:53 for system property

Returning value 00:50:56:87:39:2A for system property

Setting dhcp for nic # 0

Returning value
WINXP\ROOT\CIMV2:Win32_NetworkAdapter.DeviceID="1" for system property

ASSOCIATORS OF {
WINXP\ROOT\CIMV2:Win32_NetworkAdapter.DeviceID="1"} where ResultClass = Win32_NetworkAdapterConfiguration

Found 1 objects. Pointer c02008. return code 0(0x0)

Found 0 objects. Pointer 0. return code 1(0x1)

Clearing gateway ip addresses.

Enabling DHCP on the computer

Returning value
WINXP\ROOT\CIMV2:Win32_NetworkAdapterConfiguration.Index=1 for system property

Setting DNS Server to ip <none>

Getting method object for method name SetDNSServerSearchOrder

Set status called with flag 0, result 0

Returning value
WINXP\ROOT\CIMV2:Win32_NetworkAdapterConfiguration.Index=1 for system property

Setting dhcp for nic # 1

Returning value
WINXP\ROOT\CIMV2:Win32_NetworkAdapter.DeviceID="11" for system property

ASSOCIATORS OF {
WINXP\ROOT\CIMV2:Win32_NetworkAdapter.DeviceID="11"} where ResultClass = Win32_NetworkAdapterConfiguration

Found 1 objects. Pointer c00318. return code 0(0x0)

Found 0 objects. Pointer 0. return code 1(0x1)

Clearing gateway ip addresses.

Rpci: Sending request='deployPkg.update.state 4 101 C:\WINDOWS\TEMP\vmware-imc\guestcust.log@The system cannot find the file specified.' Rpci: Sent request='deployPkg.update.state 4 101 C:\WINDOWS\TEMP\vmware-imc\guestcust.log@The system cannot find the file specified.', reply='', len=0, status=1 error number 0, The system cannot find the file specified.

Any thoughts on what is going on here would be appreciated. Thanks.