We are having problems with oem-config using this process:

https://help.ubuntu.com/community/RecycleOldHardware

We are using the latest Dapper alternate CD.  We do not use the oem
setup from the CD, but rather use a kickstart file that automates the
install.  Once the base install is done, a script executes on the first
boot that does:

aptitude update
aptitude dist-upgrade
aptitude install oem-config oem-config-keyboard oem-config-locale 
oem-config-timezone mozilla-thunderbird man

Once we try to get the modem configed and are happy with the state of
the machine, we run oem-config-prepare and shutdown.

When the machine is booted again, the oem-config scripts run to set the
TZ, keyboard, set up the initial user.  When we try to log in with that
username and password, it fails.  Booting to rescue mode and resetting
the password fixes the account.  The oem user gets removed, so the oem-
config process is essentially leaving the machine inaccessible when
delivered.

-- 
oem-config-prepare messes up password.
https://launchpad.net/bugs/47164

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