After upgrade to VC 2.5u2 I ran into some problems with my templates. When cloning XP guests, I noticed that they would not run the sysprep after first boot. I had to first manually login and then they would start or after waiting a really long time without login.
Today I found a VMware KB article, that might do the trick. Haven’t had time to test it yet, but if you are suffering the same issues, it might be worth looking at.
Hi Gabe, just confirming that this actually is fixed in VC 2.5 U3 too :-)