Answer

The System Preparation tool, Sysprep.exe, is used in Deployment Solution to prepare an installation of Microsoft Windows^® for imaging.

Support

Sysprep is a utility provided by Microsoft.^*  Because of this, support for its use within Deployment Solution is constrained by the requirements outlined in Microsoft knowledgebase article 828287.  The following is a short list of common unsupported applications:

• Sysprep is used to create images of an installation that has been upgraded.
• Sysprep is used to create a new image of a Windows installation on a computer that has been running in a production role.
• Sysprep is used to install an operating system from an image if the image was created by using a computer that has a different HAL.^**
• Sysprep is used to create a new image of a system that was originally created by using a custom OEM installation image or by using OEM installation media.

Please review Microsoft's support article for a comprehensive list of unsupported scenarios.

^* A comprehensive overview of the Sysprep utility is provided in Microsoft TechNet article How Sysprep Works. 

^** Support for deployment of an image to a system with a disparate HAL is provided in Deployment Solution through the use of DeployAnywhere.