The sysprep.inf is not just a simple text file anymore. :-( It is now *.xml and the * can be called almost anything you want. One also has to install Windows SIM (System Image Manager) from the Microsft WAIK (Windows Automated Installation Kit) to create this XML file. Good luck editing it with a text editor.
First kick at sysprep revealed that it likes to disable the administrator account. So I have to use the account that I orginally created to logon to Vista for sysprep. Apparently sysprep makes multiple passes for different purposes. Every time sysprep finishes, the mini-setup window appears. Further checking reveals that Windows has " Setup States"
The Windows image state can be found in HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\Setup\State
With a value of IMAGE_STATE_GENERALIZE_RESEAL_TO_AUDITMy best guess is that it is waiting for an auditing pass.