I create the image, then run c windows\system32\sysprep\sysprep.exe. I choose OOBE, Generalize, and shutdown. Once the computer syspreps and shuts down, I capture the image using Acronis - you could ...

Great thread too, I am learning and taking notes! This was the procedure I always used with our imaging setups from 98 to 2000 to XP to Vista to 7. Imaging before you run sysprep makes life a lot ...