NOTE: See the following related articles:

Combining (slipstreaming) Windows XP with Service Pack 2 for reinstallation (Part 1: Introduction).
Combining (slipstreaming) Windows XP with Service Pack 2 for reinstallation (Part 2: Copying the Windows CD to the hard disk).
Combining (slipstreaming) Windows XP with Service Pack 2 for reinstallation (Part 4: Reading the boot image file).

Microsoft Knowledge Base Article 894949 contains the following summary:

This article is Part 3 of the "Combining Windows XP with Service Pack 2 for reinstallation" guide. Part 3 discusses how to integrate Service Pack 2 in the Setup files.

Note To view the other topics of the "Combining Windows XP with Service Pack 2 for reinstallation" guide, see the Microsoft Knowledge Base articles that are listed in the "References" section.

The "Combining Windows XP with Service Pack 2 for reinstallation" guide includes the following topics:

Part 1: Introduction

Part 2: Copying the Windows CD to the hard disk

Part 3: Integrating Service Pack 2 in the Setup files

Part 4: Reading the boot image file