Normally when preparing a Windows 7 base image, I'll install it normally, update everything, remove temporary files, and then enter audit mode to take care of a few final steps.  For this particular image, I decided to do everything from audit mode.

Normally after installing Service Pack 1, I remove the temporary files by running

dism /online /Cleanup-Image /spsuperseded

However, DISM quit out with

Error: 1084
This service cannot be started in Safe Mode

After checking the logs, DISM is failing while trying to create a system restore point, which does not run in audit mode.

The solution?  Go into Windows System Settings -> System Protection -> Protection Settings -> Configure, and turn off System Restore.  Once that's done, re-run the DISM command and it should complete normally.  After that, re-enable System Restore and continue on.