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The first error you see about finalize failing is due to the fact that the cloudbase-init MSI changed the location of where it installs itself. I just committed a a possible fix for that. Make sure you check it out before trying again.

Also, make sure that if you download the repo as zip, you unblock the zip before unarchiving to make sure you do not run into the "script not digitally signed" error:


If you have a windows 8.1 installation available, you will be able to use that to generate any windows image up to 8.1. So that means you will be able to generate images for windows 7 as well.

Let me know if it works for you.