Using spanned images (.swm) with ImageX /ref switch

The XP install disk puts the needed magic spice in the MBR on the disk. Until this is done the windows bootloader never runs.

You only need to use sysprep if your capturing a single image to deploy to multiple machines, Is this the case for your scenario?

To capture an image using imagex you must PXE/CD/USB boot into Windows PE.

Then use the imagex /capture to capture your image.

You can then boot the machine you wish to deploy to & use the /apply switch.