A question I have Are there any resources about Sysprep on how it works or what I need to do?
Not really. I'm still working on more detailed docs for various features. The sysprep feature is used to dynamically modify an existing sysprep answer file. You still need to create your own answer file and sysprep the machine, it just modifies it. For example you could modify the <MachineObjectOU> sysprep elements to dynamically add different machines to different OU's while still using only one image or sysprep answer file. That's just one example, there are a lot of possibilities.
Ok thank you