I am having problems with my sysprep.inf file. I think it is not even being
used. No matter what I do it always makes me go through the gui setup and
enter the prduct key.

I have the file in C:\SYSPREP\*.*

the contents are as follows

;SetupMgrTag
[Unattended]
OemSkipEula=Yes
InstallFilesPath=C:\WINDOWS\i386
TargetPath=\WINDOWS

[GuiUnattended]
AdminPassword=
EncryptedAdminPassword=No
OEMSkipRegional=1
OEMDuplicatorstring=AssuranceData-XP-Pro-SP2-1
TimeZone=35
OemSkipWelcome=1

[UserData]
ProductKey=XXXXX-XXXXX-XXXXX-XXXXX-XXXXX
FullName="Assurance Data"
OrgName="Assurance Data"
ComputerName=*

[Identification]
JoinWorkgroup=WORKGROUP

[Networking]
InstallDefaultComponents=Yes

[Branding]
BrandIEUsingUnattended=Yes

[Proxy]
Proxy_Enable=0
Use_Same_Proxy=0