To be able to create an image for Windows 7 mass deployment, you need a boot media (a CD in my case) to be able to create and restore the image. In earlier days, you created a DOS bootable disk, nowadays the OS of choice is WinPE. Here is how to create such a disk:

1. Download the "Windows Automated Installation Kit (WAIK) for Windows 7" (English). It is freely available on the Microsoft web page.
2. Burn the downloaded WAIK ISO file to a DVD.
3. On a Windows 7 PC, start "StartCD.exe"
4. Choose "Window AIK Setup"
   
5. Complete the setup with standard options
6. Start > All Programs > Microsoft Windows AIK > Deployment Tools Command Prompt
   Right-Click and choose "Run as Administrator"
7. The Tools Command Prompt appears
   
8. Enter "copype.cmd x86 c:\winpe_x86"
   
9. Enter "copy "%programfiles%\Windows AIK\Tools\x86\imagex.exe" c:\winpe_x86\iso"
   
10. Enter "copy c:\winpe_x86\winpe.wim c:\winpe_x86\ISO\Sources\boot.wim"
    
11. To create the bootable ISO file, type
    "oscdimg -n -bc:\winpe_x86\etfsboot.com c:\winpe_x86\ISO c:\winpe_x86\winpe_x86.iso"
    
12. Burn a CD from c:\winpe_x86\winpe_x86.iso
13. Booting the CD will start WinPE with a Command Window
    
14. ImageX will be available from the E: drive. Windows systems files are on the X: drive