Sysprep error Windows 2008 r2 and Windows 7

You can only run sysprep twice. If you get an error the 3rd time follow these steps to fix it:

1.     Change the following Registry key value of GeneralizationState to 7.

HKLM\System\Setup\Status\SysprepStatus

2.     Run ‘msdtc -uninstall’ and ‘msdtc -install’ to repair the DTC installation.

3.     Then re-run sysprep again and see if the issue is resolved.