Ok, I have gotten past my sysprep issue. I did a few things to try and fix the problem. The one thing that I did that I think that might have fixed the problem is that I recreated my sysprep.inf file. The old file had an encrypted password, so that may of had an affect. The other things that I did was to download XP SP3 and the deploy.cab again and copied the contents back over. Now, I just need to work out a permission issue with the capture of the image and I hope to get it complete.
Thanks for you time with my issue. This is a great site.