Today While working on System Preparation Tool (Sysprep) in Windows 7, I received the following error message:
A fatal error occurred while trying to Sysprep the machine.
After spending quite time I found the soution for the error. And the solution is,
1. Go to Sysprerp folder i.e. c:\windows\system32\sysprep\Partner
2. Then move or delete all contents of the Partner folder to another folder for backup purpose.
3. Now run the sysprep.exe
For few user’s sysprerp starts by stopping mediaplayer process running and by uninstalling & installing mstdc. For me everything without success but above steps works 100%.


THis didn’t work at all
I had to do all of them in the following order to get it to work; uninstall/reinstall msdtc, set registry value to 7, delete everything from partner folder, kill Mediaplayer then run.