JSI Tip 7703. When you run the Sysprep utility on Windows Server 2003, your computer gets stuck in a reboot loop?

Before Sysprep processes the network settings, it reboots, and continues to reboot indefinitely.

Windows Server 2003 Sysprep requires that the Telephony service NOT be disabled.

If you set the Telephony service's Startup type to Manual or Automatic, Sysprep will complete normally.