Slipstream Windows XP SP2 + Hotfixes

Use an application called nLite to make the process so much easier. This can be accompolished without using the nLite application, by copying your source XP files, all of the service packs, and then running some command line switches to update the XP files, and then burn them to a bootable CD as described in this article, but it's a lot more of a hassle. nLite makes it so much easier, and provides a lot more options.

When first launching nLite, it will prompt you for the language you want to use, as well as a path to your XP source files. I have mine shared on the network, so I point to that location. Once it examins the source, it will come back with the version, and size. Once this is done, click Next and you will be asked to choose from a list of available presets. If this is the first time running nLite, you won't have any. Just click Next to get started.

You are now prompted with a list of available options for the CD/Image. The main options are to integrate a service pack, and create an unattended setup, and bootable ISO image. You also have the option to remove various XP components, and include multiple tweaks like renaming the administrator account, disabling balloon tips, and turning off system restore.

Getting all of the hotfixes released since SP2 is a pain. This guy has a site that lists them all, as well as a .cab file that includes all of them.

Once you select the options you want, click next to customize each of those options. Depending on what options you choose you will go through a wizard for each option. Once you are done and create your .iso, you can test it and then re-run Nlite to modify your options further to your liking.