For anyone who may stumble on this same problem one day, let me enlighten you as to how this problem was resolved. First let me say though that I was surprised no one could help me but then again it is one of those weird problems that you really need to DO in order to understand. In all honesty, I still don't know EXACTLY what made it work but there are a couple of variables that I will share with you. My friend seems to believe that when I created the original Management VM with WAIK and SIM, etc, that I should not have split out the partition into two(with small amount for System Reserved). Windows does this by default if you click CUSTOM, NEW, APPLY. It created two Partitions. One for the OS and a smaller one called System Reserved. However, My friend said that it worked for him when he simply just clicked NEXT on that screen and let Windows only create one partition. I don't so much believe that was the solution BUT... it was something different than the way I did it originally. Second, this time I did not put my autounattend.xml on a USB Drive but rather created an .FLP file then loaded the xml file into that. You can use many programs (free) for this but I used MagicISO, created a 1.44Mb drive, put my .xml file into it, then named it. After that, I had to right-click the FLP and take off the extension so that it only had .flp on the end. By default MagicISO puts something else instead. Then, I added a floppy drive to the VM and pointed it to the FLP file. These two things are what I did differently and they worked. And, they work EVERYTIME. On a side note: keep in mind that I was using the TrainSignal 70-680 training video to learn about this and VMWare. So it was very specific. Best of Luck to you. SoftwareScout