There are only a few things that can cause the XML to not be detected: 1. wrong arch in XML 2. file in the wrong place If you are installing a 32bit Windows 7, AND are using a 32bit install source, it should read this file. If you were using a 64bit install source, it would ignore this file since you have "x86" as your arch. As far as where the file is. Windows 7 Setup will look in the root directory of any attached drives for the XML file. It must be named Autounattend.xml. You can put it on the root of your install key, or you can put it in another USB key and have that attached. Another method is to use a USB Floppy Drive. I do not do USB installs for creating master images, I use a DVD without an unattend file on it. Then during an install, I insert a USB key with the appropriate XML file on it. One last thing, if your USB key has multiple unattend files in the root, this could be a problem also. Make sure you only have 1 XML in the root, and put the other ones you may have into a folder. And check for noob mistakes like having the wrong file on the drive.