We just received word from one of our support engineers working on the front-lines that some customers are reporting problems wherein Sysprep fails on Virtual Machines that have IE10 on them.

The issue is not a VMware bug, it’s an Registry location problem, but customers might still reach for the phone to call us first. We thought we’d try and get the word out today to try and save you some steps (and time).

The problem manifests itself when you attempt to Sysprep a Virtual Machine that has IE10 on it.  In the Sysprep setupact.log log file (located at C:\Windows\System32\Sysprep\Panther), you see:

--> Please see the rest on VMware's Blog : http://blogs.vmware.com/kb/2013/05/attempting-to-sysprep-a-virtual-machine-with-ie10-fails.html