Slipstream Windows XP:

Gather the required components

Copy a Windows CD to a directory. (e.g: D:\XP\)

Copy the service pack to the root. (e.g: D:\)

Using a command prompt, issue the 'integrate' command.
(e.g: D:\>WindowsXP-KB936929-SP3-x86-ENU.exe /integrate:d:\xp)

Setup will run, and then return with a dialog box stating that the process is complete.

Recreate the CDROM

Launch a burning program, and use the following settings:

CDROM Bootable

The XP Boot Image

No Emulation, 07C0, 4 sectors.

Mode 1 disc

Disc-at-Once