This hotfix might help...
http://support.microsoft.com/kb/894871
Regards
Johan Arwidmark
Microsoft MVP - Setup / Deployment
http://www.deployvista.com
On Thu, 16 Aug 2007 18:06:04 -0700, Seaspray
<Seaspray@discussions.microsoft.com> wrote:
>The test computer is an IBM T30 laptop with the OEM installation of Windows
>XP (RTM, no service packs). The objective was to update the base
>installation with all updates and run sysprep to create a corporate image
>that contained all microsoft updates. After the initial setup, XP SP2 was
>installed. Then, microsoft update was used to apply further updates.
>Sysprep was run to reseal the OS for the image. Restarting the OS fails with
>the error "The system is not fully installed. Please run setup again."
>Starting again from the scratch OEM Install, I updated with SP2 and installed
>the first round of critical updates (no recommended or hardware) from
>microsoft update. I imaged the drive so I could restored to this point for
>further testing. I checked with sysprep to make sure my restore point was
>good, then segmented the remaining updates into batches and tested with
>sysprep. The root cause is the Media Player 11 update. I am not having
>issues reguarding any other update so far and I only have a few left to go.