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Hello, I have created a new build from a Windows 7 64 bit volume edition disk which didn't need a key. I installed drivers, software and used the KMS Professional N key to activate my product which was successful. I then went to sysprep my machine and generilize it, however encountered the 'Sysprep has encountered a fatal error'. I have checked my rearm count after the attempt and it shows 2 left (a bit miffed that the unsuccessful attempt has taken a life!) I am not using answer files - once I have sysprepped I will capture the image and deploy via Landesk Management Suite, which I have successfully done on other Windows 7 images. Here is the are the setuperr log and I have attached the setupact log. Hopefully someone can help! Thanks in advance.... Setuperr - 2012-07-06 16:03:20, Error [0x0f0082] SYSPRP LaunchDll:Failure occurred while executing 'C:\Windows\System32\spbcd.dll,Sysprep_Generalize_Bcd', returned error code 2[gle=0x00000012] 2012-07-06 16:03:20, Error [0x0f0070] SYSPRP RunExternalDlls:An error occurred while running registry sysprep DLLs, halting sysprep execution. dwRet = 2[gle=0x00000012] 2012-07-06 16:03:20, Error [0x0f00a8] SYSPRP WinMain:Hit failure while processing sysprep generalize internal providers; hr = 0x80070002[gle=0x00000012] setupact log - setupact.log