sysprep failure: Could not register SetupCl

after installing windows server 2008r2 enterprise edition , applying organizations stringent security-related settings attempting use sysprep take image , getting below error(s) (copy-paste setuperr.log). 

as far can tell first error regarding administrator password distinct following believe error spopk.dll "bubbling up." (based on reading of setupact.log)

2011-11-17 11:38:14, error                        [shsetup] cleanupadministratorpassword: netusersetinfo(1003) failed (0x800708c5) [gle=0x000003e5]

2011-11-17 11:38:16, error      [0x0f0039] sysprp spopk.dll::sysprep_generalize_opk:could not register setupcl; status = 0xc0000061

2011-11-17 11:38:16, error      [0x0f0082] sysprp launchdll:failure occurred while executing 'c:\windows\system32\spopk.dll,sysprep_generalize_opk', returned error code 31

2011-11-17 11:38:16, error      [0x0f0070] sysprp runexternaldlls:an error occurred while running registry sysprep dlls, halting sysprep execution. dwret = 31

2011-11-17 11:38:16, error      [0x0f00a8] sysprp winmain:hit failure while processing sysprep generalize internal providers; hr = 0x8007001f

any ideas? machine not in domain , hardware dell 2950.

edit: should have mentioned running sysprep gui, selecting generalize , oobe. (no unattend).

the problem 1 of restrictions required removing "administrators" group privilege "manage auditing , security logs" , instead assigning privilege manually created "auditors" group. fix in case adding administrator account "auditors" group (must created first)

if applying stig , runs issue, rule # sv-33484r1_rule.

Windows Server  >  Setup Deployment