Error message when you run the “sysprep /generalize” command on a Windows Vista-based computer: “A fatal error occurred while running sysprep”
When you run the sysprep /generalize command on a Windows Vista-based computer, you receive the following error message:
A fatal error occurred while running sysprep.
Additionally, an error message that resembles the following may be logged in the Setuperr.log file:
SYSPRP LaunchDll:Failure occurred while executing ‘C:Windowssystem32msdtcprx.dll,SysPrepDtcCleanup’, returned error code -2146434815[gle=0x000000b7]
This error message is logged if you change the value of the following registry entry to 7:
HKEY_LOCAL_MACHINESYSTEMSetupStatusSysprepStatusGeneralizationState
For more information on this issue, including potential causes, workarounds, and resolutions, see: Microsoft KB Article KB947466.

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