Virtual Machine Deployment through Template fail with error 1700 in SCVMM 2008 R2 SP1

SYMPTOMS:

New virtual machine deployment through the template will fail with the Error 1700 at 1.6 Virtual machine customize phase. Same time SCVMM Admin Console crashes with error 1612 and Event ID 19999 and 1 are logged to the VM Manager Event log. 

Error (1700)
The Virtual Machine Manager Service on the SCVMM server stopped while this job was running. This may have been caused by a system restart.
Recommended Action
To restart this job, navigate to the Jobs view and select the job in the results pane. Then, in the Actions pane, click Restart.

Event ID’s in VM Manager Event logs:

Log Name: VM Manager
Source: Virtual Machine Manager
Date: 8/17/2012 2:09:40 PM
Event ID: 19999
Task Category: None
Level: Error
Keywords: Classic
User: N/A
Computer: SCVMM server
Description:
Virtual Machine Manager (vmmservice: 1680) has encountered an error and needed to exit the process. Windows generated an error report with the following parameters:
Event:VMM20
P1(appName):vmmservice
P2(appVersion):2.0.4521.0
P3(assemblyName):SysPrepInfUtil
P4(assemblyVer):2.0.4521.0
P5(methodName):M.V.W.UnattendXMLFile..ctor
P6(exceptionType):S.IO.FileLoadException
P7(callstackHash):7ac4

Source: Virtual Machine Manager
Date: 8/17/2012 2:09:40 PM
Event ID: 1
Task Category: None
Level: Error
Keywords: Classic
User: N/A
Computer: SCVMM server
Description:
System.IO.FileLoadException: Could not load file or assembly 'Microsoft.ComponentStudio.ComponentPlatformInterface, Version=6.0.0.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35' or one of its dependencies. The located assembly's manifest definition does not match the assembly reference. (Exception from HRESULT: 0x80131040)
File name: 'Microsoft.ComponentStudio.ComponentPlatformInterface, Version=6.0.0.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35'
at Microsoft.VirtualManager.WorkloadCreation.UnattendXMLFile..ctor(String path, Version osVersion, Architecture arch, ProductType ptype)
at Microsoft.VirtualManager.WorkloadCreation.UnattendXMLFile.CreateUnattendXMLFile(String path, Version osVersion, Architecture arch, ProductType ptype)
at Microsoft.VirtualManager.Engine.VmOperations.CustomizeVMSubtask.createAnswerFile(OSConfig osfg, String answerfilepath)
at Microsoft.VirtualManager.Engine.VmOperations.CustomizeVMSubtask.generateAnswerFile()
at Microsoft.VirtualManager.Engine.VmOperations.CustomizeVMSubtask.RunSubtask()
at Microsoft.VirtualManager.Engine.TaskRepository.SubtaskBase.Run()
at Microsoft.VirtualManager.Engine.VmOperations.NewVmFromTemplateSubtask.PostVmCreationCustomize()
at Microsoft.VirtualManager.Engine.VmOperations.NewVmSubtaskBase.RunNewVmSubtasks()
at Microsoft.VirtualManager.Engine.VmOperations.NewVmSubtaskBase.RunSubtask()
at Microsoft.VirtualManager.Engine.TaskRepository.SubtaskBase.Run()
at Microsoft.VirtualManager.Engine.TaskRepository.Task`1.SubtaskRun(Object state)
WRN: Assembly binding logging is turned OFF.
To enable assembly bind failure logging, set the registry value [HKLM\Software\Microsoft\Fusion!EnableLog] (DWORD) to 1.
Note: There is some performance penalty associated with assembly bind failure logging.
To turn this feature off, remove the registry value [HKLM\Software\Microsoft\Fusion!EnableLog].
-2146234304

CAUSE:

This issue occurs if the Virtual Machine Manager Server assembly doesn’t match and also If WAIK installed manually

Current version: Microsoft.ComponentStudio.ComponentPlatformInterface, Version=6.1.0.0

Expected Version: Microsoft.ComponentStudio.ComponentPlatformInterface, Version=6.0.0.0

RESOLUTION:

  1. Take Full Data base back up of Virtual Machine Manager DB
  2. Uninstalled the SCVMM with retain database option
  3. Uninstall WAIK from Add Remove Programs, If exists 
  4. Go to C:\Windows\assembly on SCVMM server
  5. Find the Microsoft.ComponentStudio.xxxx components right click and uninstall them
  6. Install the SCVMM 2008 R2 SP1 with existing database, it will install the Correct WAIK 
  7. Install the Virtual Machine manager patches
  8. Reboot the Virtual machine manager server
  9. Now try to deploy the VM through templates, it will complete successfully