here is the output of the setuperr.log Above settings are in the file only once but system installed already has these settings!! @Tripredacus: I am installing IIS using the answer file as the application we test on these VMs is dependant on IIS to be installed. Did I understand you correctly? Now I added audit Mode to Autounattended.xml file to get me in to audit mode straight after a install then do sysprep /generalize /oobe /shutdown as unattend.xml file is already cached. [EDIT] OK, now I am using Autounattended.xml I get most of what I want. The problem is that I now get the OOBE Wizard, which ask for user comp name, username, password etc. and two users I added in XML are not created [/EDIT] Thanks