I tried to create a Windows 7 template in SCVMM and it kept failing, but it would not give me an error message, it would just fail.  I did some digging around and found that sysprep was failing with an error –2147024864.  I kept digging and found that in the RC of Windows 7, this was a known issue, I guess it didn’t get fixed in time for RTM.  The workaround is to stop the Windows Media Sharing service before executing sysprep.  Since I don’t plan on sharing my media, I stopped the service and then disabled it.  Once the service was stopped, I was able to sysprep my Windows 7 VM and successfully create a template. 

Here are the Release Notes from the RC that discusses this issue.  It’s about half way down under the System Preparation Tool section.

http://download.microsoft.com/download/F/D/B/FDBFC5A5-51CD-4C8D-9F18-7BCC3810498E/Windows%207%20RC%20Release%20Notes.htm

Until next time!

Rob