@nitelife Thanks for pictures. Turns out I was on the wrong track. I thought you might still have a special partition layout that is causing this. But looks like you got that fixed already. At least we got that ruled out.
What I am wondering about is why that boot partition (?) is 2 GB?! Have you messed with the boot partition and/or BCD?
Which OS type is configured for that image in the FOG web GUI by the way? Possibly not Win7 which would explain the problem?!
As well, would you please take a picture of the error screen so we see exactly what you see (the error code is definitely wrong).