Issue has been alreadyfixed in Windows7 RTM and for Windows 7 RC you have to use the workaround

Identical error message, but this workaround didn't work for me...until...also in Services, I disabled Media Center Receiver Service and presto,
bad, bad error be gone!
Found it here, Michael's post- http://social.technet.microsoft.com/Forums/en-US/itprovistadeployment/thread/75c5c2bc-65c7-4a3c-ab08-2bbd56c80708?prof=required

Daniel C.

@ankito : What makes you so sure the issue "has been already fixed in Windows 7 RTM" (May 07, 2009 : more than a year ago !) ???

I'm trully curious, since it obviously has NOT been fixed : i just ran into the exact same error, sysprepping an OEM x64 Windows 7 Pro.

Whatever ; once the Windows Media Player Network Sharing service is stopped, sysprep is not angry anymore and agrees to do its stuff. Clarksville wrote "Tired of donating my time to problems like this." : i second this.

One other thing you might want to consider when trying to troubleshoot this issue is whether you have the Zune software installed on this computer or even have connected a Zune to the said computer.  Even though it is not part of the “Windows Media Player/Center” it does still utilize the drmv2clt.dll.  I had that same issue as I don’t use WMP but I do use the Zune software and that escaped my mind as being an issue until I had a brain fart moment, disabled the Zune Media Sharing service and then it worked.  Sorry if this was covered already.

FYI

3.17.11

win 7 ho pre x64 SP1

same problem persists.

same fix fixed.

Hello Hello Microsoft:

The problem is still here even with SP1.  I am tired of stopping the winmedianetwork serviec and making this sysprep to work.  Please fix it.

Just having the same issues on Win 7 x64 SP1. Simple install using an autounattend.xml answer file, then when trying to generalise, sysprep fails.

Just in the process of restoring the reference image again, and will try shutting down the WMP Network serving service to see what happens!

Just having the same issues on Win 7 x64 SP1. Simple install using an autounattend.xml answer file, then when trying to generalise, sysprep fails.

Just in the process of restoring the reference image again, and will try shutting down the WMP Network serving service to see what happens!

l simply stopped the service and sysprep worked. Of course, doing it this way and not disabling the service will mean that the servie will start if you reboot whilst in audit mode.

I'm guessing it would be relatively simple to add something to the sysprep command to switch off this service if it is running.

I concure that the problem is still exist.   My configuration is with windows 7 Pro 32bits w/SP 1.

This issue still exists in 2012, unreal!!  Setting up a template to clone for VM labs.  Conducted a fresh install of Windows 7 Ultimate w/ SP1 all patched up and sysprep was failing.  I tried every other potential fix I could find without success and then I found this thread.  

Amazing that disabling the WMP network sharing service worked like a charm.  Rather annoying but just glad I've got it fixed.  Thanks!

Yes, for a company that has a long and challenged history of omnipotence I have come to expect these information black holes as a technician. I have been working with MS and also with Windows since DOS 2.2 and I recall the DOS 4.0 debacle. It was the beginning of the use of "Hi-memory" area. They had created the ability to use hi-memory (introduced by Compaq) but they didn't bother to reserve or map what was in memory. So when DOS went to retrieve information loaded in memory it either was overwritten, or could not be located. Thus, all machines locked! I worked with a couple engineers from UC Irvine who identified and resolved the problem Windows. I recall working at WB and I introduced Windows ADS, well ultimately we had to migrate from one machine to another. There was an information store containing the data of active directories configuration and security called the "DIT" in restoring ADS I ran into a wall. There was no documentation on how to move the DIT, the core of ADS's information. Well I finally got to a high level technician that could work with me to relocate and document the procedure. If you are familiar with UNIX then you understand that the user community documents and tests new code. Just inherent part of computing. So I am not surprised that they have left us to resolve this issue ourselves.

Of course they are now pushing AZURE and online storage which could be why they aren't assisting us with this issue.

This problem first appeared in Vista and also still exists in Windows 7, as you have noticed. You get this error if you choose a Network Location prior to using Sysprep. Any time building an image, if you get the Choose Network Location window, click cancel and you won't have this error.

I believe, "technically" that it only happens if you choose Home or Work, but not Public. To be safe, I never choose a location at all, and then if I need to specify a location, I will handle it with the answer file.

Issue still occurs. Just received a new Dell Inspiron 3847 with Win7 SP1 x64 and received the error when attempting to sysprep and create an image. Disabling the WMPNetworkSvc resolved the issue. This error did not occur on both an HP Compaq Pro 6300 AiO a Dell Optiplex 780 both running Win7 SP1. Both the Dells also have the issue where after the system reboots from syspreping in loops the error stating "Windows could not finish configuring the system. To attempt resume configuration, restart the computer" I was able to bypass this error by booting the machines into Safe Mode then restarting. You get an error when you boot into Safe Mode however once you reboot back into Normal mode the sysprep completes.

I haven't yet figured out what causes this as the setup.etl file keeps getting corrupt to I am unable to run a trace log to see what is preventing sysprep from continuing. I believe it has something to do with ESET but ESET is on all 3 PCs yet the issue only happens on the Dell models. 

Thank you so much for posting this -- you saved me a LOT of time on research!

Cheers

Chris

Still the same solution for the same problem in November 2014.

Great Job. MS :\

Problem still exists in Win7-64 SP1, all updates. Sysprep failed, disabled service and it worked.

Thank you for the solution!