Sysprep run supportability
Sysprep is primarily a tool used to prepare a Windows installation for cloning. It has been around for some time now, so we won't go into it too much here. Suffice it to say that the tool is alive and well in Windows 7 and 8, and it is one of the tools called by MDT scripts to enable Audit mode, customize images, and build reference images.
Sysprep is famous for having a three-times limit for its run supportability on a single image before it is no longer in a supported state. This is often misunderstood, so let's get a little clarity here.
From http://technet.microsoft.com/en-us/library/cc766514(v=WS.10).aspx :
"There is no limit to the number of times Sysprep can run on a computer. However, the clock for Windows Product Activation begins its countdown the first time Windows starts. You can use the sysprep /generalize command to reset Windows Product Activation a maximum of three times. After the third time you run the sysprep /generalize command...