Ok, since it was a brand new installation I went ahead and redid FOG on an Ubuntu 10.04 installation. I haven’t yet experimented with that but hopefully the reboot issue is resolved.
I wasn’t familiar with sysprep, I hadn’t done it on the XP machines I had used before. I read what I could find on it and this time a did FOG Prep like before and then sysprep. At first I tried OOBE with Generalize checked. I had the same kind of boot problems on different files this time but same results.
In some of the things I read about sysprep it talks about building an answer file and doing a fresh install of Windows 7 and going in to audit mode to add all the applications and change settings. I already have the computer sitting like I want it and I am going to the same model of laptop when I deploy the image. Is all the set up necessary? Should I be able to run sysprep on the machine that I want to image and go from there without starting over with an entire Win 7 reinstall?