Sysprep Oddity

I am in the process of deploying Windows XP SP2 with Updates up to today, I
am using SP2 Sysprep. The oddity I am discovering is that when I use the
-pnp, on the destination computer using Norton Ghost 8.3, the system is
unresponsive. There is a LED on the optical mouse lights up and the num lock
indicator on the keyboard lights up, however both of those devices are
unresponsive. This didn't happen before. Is anyone else experiencing this
issue? I am imaging Dell OptiPlex GX520 and GX620 systems.

Thanks!
Dan