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Service Pack 2 has been Released To Manufacturer! If you want to get your hands on it before Microsoft posts them on the web then you'll want to go HERE and bring a torrent client of course ;) It's come to my attention that there's been quite a few problems with people slipstreaming the RTM build 2180 of SP2 so I'll offer you guys some alternate instructions. These alternate instructions will be within tags like this paragraph is ;)
I've also found a great application that'll help you guys out HERE called nlite.
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I'm writing this today to get you prepared for the SP2 release. You will want to get your install CDs up to date so that you'll be able to install SP2 without having to go through windows update or anything else like that after a clean install of windows. This guide can also be used for updating a Pre-SP1 CD to SP1(substitute SP1 files for SP2)and making your backup windows discs bootable.
What will you need?
Original Windows XP CD (Home or Pro)
SP2 - Today I'll be using RC1 as a demo for you. You can also use these instructions to update your disks to using SP1a. SP2 RC1 weighs in at 273Mb and can be found here. It shouldn't be too much longer before it's officially released.
Good CD burning app such as Nero
ISOBuster can be downloaded here.
Step 1
Open Windows Explorer and click Tools--> Folder Options Then click on the View tab. Show hidden files and folders radio button MUST be selected and hide protected operating system files MUST be unchecked.
Copy all of the contents of your windows CD to C:\winxp
Step 2
Move the SP2 file you downloaded to a folder named C:\winxp-sp2
Step 3
Click start --> Run
C:\XP-sp2\XPSP2.exe -s:c:\winxp\
This will extract all of the files to a temp directory.

After it is done extracting all of the files it will update all of the files on your windows CD for you.

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If You're unable to get the instructions above to work then here's an alternate: (skip if above worked)
1.)C:\XP-sp2\XPSP2.exe -x
2.)You'll get a box asking you where you want to extract the data.
3.) Use
C:\XP-sp2\
4.) Copy the C:\XP-sp2\i386 directory to
c:\winxp\ overwriting the old i386 directory
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try the /integrate switch.
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After it's completed you'll see this screen.

Step 4
In order to make this new CD bootable we'll need to pull out ISObuster. when you open the app select which drive your CD is in and browse to where it says bootable CD. Then you'll see the files listed below. The one you need is the MS Corp one. Right click on it. and select extract. Save it to a folder called C:\winxp-boot. That's all we need from ISObuster.

Step 5
Burn baby burn!
EZ CD 5
File --> New CD --> Bootable CD
On that screen set bootable CD type to no emulation
Load Segment to 0x7c0
Sector Count to 4
Click Browse
Browse to
C:\winxp boot\Microsoft Corporation.img Click on open
File --> CD Project Properties
The Volume Label MUST be set
Win XP Pro should be WXPCCP_EN
Win XP Home should be WXHCCP_EN
Win XP Home OEM should be WXHOEM_EN
Win XP Pro OEM should be WXPOEM_EN
File system must be
ISO9660
Physical Format;
Mode 1: CDROM
On the file types tab;
Select Add all files
Uncheck the Do not add boxes
Put all the files in and burn using disc at once.
Nero
File--> New then select boot cd
Under source of boot image data select image file and browse to the file C:\winxp boot\Microsoft Corporation.img file
Set kind of emulation to no emulation.
Load segments to
07C0
Number of loaded sectors to 4
Switch to the ISO tab
This is where you set the Volume Lable
Win XP Pro should be WXPCCP_EN
Win XP Home should be WXHCCP_EN
Win XP Home OEM should be WXHOEM_EN
Win XP Pro OEM should be WXPOEM_EN
Select Burn and choose disc at once and put all the files in and BURN!