You can integrate the SP1 (SP1a and most likely also the SP2) update into the actual WindowsXP (same goes for other versions of windows). What this effectively means is that when you goto install Windows, it installs WITH the SP1 already installed so you dont have to manually updated it afterwards. SLipstreaming is a more effective way of doing things  Have a look at something like this http://support.microsoft.com/?id=814847
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