A few days ago I had to make an image with Windows XP SP3 with all needed applications for lite touch installation.
Everything went well and I was happy until I entered the mini-setup phase on the first computer with that image applied on it. I received an error regarding the product key. I guess I tried a dozen of product keys but none of them worked. After reading the message again and more careful, I realized that the problem was with my Windows XP media – it was not a VL media. And I realized this because the message said to look for a product key on the Certificate of Authenticity (COA) sticker and not my License Agreement…
Got another media with Windows XP SP3 VL and made a repair. During the repair phase, I provided the VL product key and it worked. Next time I entered the mini-setup, I filled in required info and that was it.