How to create your own bootable Windows XP + SP3 CD?

You’ll need the following:

You don’t have to use BBIE or Nero if you don’t want to, but this tutorial uses them. All you really need is an application which can extract the boot image from your current Windows XP CD, and a CD burning application which can utilise the boot image to create a new bootable CD. Choice of applications isn’t critical.

You need to create a folder structure to hold all the necessary files on your PC locally before you burn them to CD. I used a secondary hard drive (D:) and created two subfolders: XPSP2CD and XPSP3 (my XP CD already has SP2 slipstreamed), so I’ll use those names throughout the tutorial.

Copy the entire contents of the XP CD to D:\XPSP2CD, but first make sure that hidden files and folders are visible and that protection of system files is turned off via Windows Explorer.

To check this, go to Tools/Folder Options/View, check the radio button for “Show hidden files and folders” and make sure the checkbox next to “Hide protected operating system files” is unchecked.

Next, copy the SP3 standalone file (windowsxp-kb936929-sp3-x86-enu.exe) to D:\XPSP3.
Go to Start/Run and type in:   D:\XPSP3\windowsxp-kb936929-sp3-x86-enu.exe –x
This launches an extraction dialogue box. Extract the files to D:\XPSP3, and once that’s done you can delete the original SP3 file as it won’t be needed any more.

BBIE stands for Bart's Boot Image Extractor, or should I call it Bart's Boot Image Explorer? Nea! people would think that they can browse something.
One more thing, BBIE should be pronounced as "baby". Download the file  >> here <<
Download BBIE and extract the files to a local folder (in my case, D:\BBIE). Then, open a Command Windows, navigate to D:\BBIE and run the following command:  bbie x:
(Where x: is the optical drive with the XP CD.)

BBIE will search the CD for any available boot images, and extract them using an image1.bin, image2.bin, etc naming convention. There should only be one boot image on the XP CD. BBIE also can extract boot images from ISOs – just change the command to:

bbie x:\cdimage.iso
(Where x: is the folder containing the ISO, and cdimage.iso is the filename.)
The image1.bin will be stored in the active folder (D:\BBIE).
To integrate the service pack, go Start/Run and enter the following command:
D:\XPSP3\i386\update\update.exe /integrate:D:\XPSP2CD

Note that there’s no space between /integrate: and D:\XPSP2CD. The upgrade program will launch and install the service pack into the locally cached CD, and confirm once it’s done.

Launch Nero Burning ROM and create a new bootable CD compilation. When the compilation properties window comes up, select the Boot tab.

Click the “Image file” radio button and Browse for the image1.bin file which BBIE extracted. Then under Advanced, tick “Enable expert settings”. Change “Kind of emulation” to “No emulation. Make sure that “Load segment of sectors” is set to “07C0” and change “Number of loaded sectors” to 4.

Hit OK, then add the contents of D:\XPSP2CD to the compilation project. Burn the CD and you’re done.

Most Windows updates can be slipstreamed into installation media via the same process, so it’s worth keeping the folder structure and saving the Nero compilation so that you can just keep adding to the local cache. Using a rewritable CD will avoid wasting media, or it works just as well when updating a network install location.