Thanks for the reply. Unfortunatly I dont have access to the server right now but I did see your reply while i was working on it. This made me realize that fog was having issues resizing my image. I did not take into consideration that i was using smaller disks than my master image. Being short on time for my project, i decided my best course of action was to resize the partition before sysprep. This would just allow me to test deployment speed for my project. I was convinced that the ZFS was causing issue but you have put me in the right direction. Many thanks, even though I did not narrow down the problem, at least your answer got me thinking of another way to fix this and I will be able to explain in my documentation as of why it would not deploy.
PS: Thanks to any developer of this projectthat reads this, I have been working with fog for the past few weeks and it has taught me alot and it was alot of fun :)