When deploying a virtual machine from a Windows XP template using the VirtualCenter Customization Wizard, the wizard will run briefly, or appear to not run at all.

Further investigation reveals the following logs in the deployed virtual machine:

c:\WINDOWS\Temp\vmware-imc\guestcust.log

Rpci: Sending request='deployPkg.update.state 4 101 C:\WINDOWS\TEMP\vmware-imc\guestcust.log@The system cannot find the file specified.
'

Rpci: Sent request='deployPkg.update.state 4 101 C:\WINDOWS\TEMP\vmware-imc\guestcust.log@The system cannot find the file specified.
', reply='', len=0, status=1

error number 0, The system cannot find the file specified.

Uninstall Trend Micro OfficeScan from the virtual machine template.

Symantec Endpoint Security (SEP) may also cause the same issue.

Ripped off by VMware http://kb.vmware.com/kb/1006025