Symptom:
A VM is cloned and sysprepped. For the first boot, it will throw you an error "Windows could not finish configuring the system". How may times it will show this message, it will keep on restarting but just stays there. NOTE: Few lucky times it got fixed by itself after few restarts. So, please try 4-5 restart before proceeding with the work around.
Cause: Might be one of the digitally signed drivers.. may be related to any of the Anti-virus drives which are not digitally signed or something I guess.
Workaround:
NOTE - This worked for me on Windows 2008 R2 server. TRY THIS AT YOUR OWN RISK. DON'T BLAME ME IF IT BRICKS SOMETHING
Once you see the message window
on your VM console, press Shift+F10. This will bring you a command prompt. At
the prompt enter the following commands one after one.
bcdedit.exe -set loadoptions
DDISABLE_INTEGRITY_CHECKS
bcdedit.exe -set TESTSIGNING ON
Now, restart the VM one more
time. Once you logon to the VM, revert the changes you did above by running
following commands at command prompt.
bcdedit.exe -set loadoptions
EENABLE_INTEGRITY_CHECKS
bcdedit.exe -set loadoptions
TESTSIGNING OFF
Courtesy: Couple of articles/Forums I have googled.
Jeff Harrison at http://social.technet.microsoft.com/Forums/en-US/w7itproinstall/thread/f7e1a2ce-f797-4e34-ae47-529926186275
Later folks...