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Windows Could Not Finish Configuring the System

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Problem: During the Sysprep phase of Windows 7 deployment the following error is received: "Windows could not finish configuring the system. To attempt to resume configuration, restart the computer."

Resolution: This error is caused by the inability of Sysprep to process one or more registry keys either due to the size, security settings or state of the key. Microsoft has released a hotfix to fix the registry key size problems which can be found here. This hotfix is included in Windows 7 SP1. If the behavior continues after the hotfix is installed, or you are using Windows 7 SP1 the problem is likely due to an application that has a registry key with restrictive permissions. To fix this problem you will need to identify the application that is blocking Sysprep and remove it from the virtual reference machine, recapturing the image.

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