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#1390
Since the error message states that the error is in "Microsoft-Windows-Shell-Setup", that's where you should look.
What time zone are you specifying? The time zone name must be exactly one of the recognized ones; a misspelled time zone name will throw an error.
The Sysprep error log should tell you what the error is. Have you checked it?
If you still can't find the problem, try eliminating the "Microsoft-Windows-Shell-Setup" section entirely and see if it works. If so, put things back in a few at a time until it fails, then narrow it down from there. You just might have a problem that WSIM doesn't detect.