Tuvi123 -- Bingo!!! We have a winner! Something about the sysprep process did something that even a fresh installation from the downloaded...
Hoping for some 64-bit compatible magic... Phazor -- My only installation of Win7 Enterprise is 64-bit, so I tried running your 32bit-only...
Tuvi123 -- After many tries (over 100), I was unable to duplicate your results on a virtual test machine. I consistently got the same error code...