“Slipstreaming” is the combining of the original Windows installation files with the latest Service Pack. Some versions of MS Office can also be slipstreamed.
Manually creating a slipstreamed XP SP2 CD SP3 instructions are here.
Autostreamer: automatically create a slipstreamed XP SP2 CD (alternate download here).
Special instructions for a DELL slipstreamed CD
Slipstream Office 2003 to SP3 (by Robert Sparnaaij, MVP for Office Systems – Outlook)
How can I write ISO files to CD? (ISO images can be loaded into several different CD recording software packages to create CDs.)
Description of CD-R and CD-RW recording in Windows XP
Burning CDs in Windows XP by the late Alex Nichol, MVP.
279157 Description of CD-ROM Recording in Windows XP
316529 CD-R drive or CD-RW drive is not recognized as a recordable device
320553 CD-ROM drive or DVD-ROM drive appears to be missing after you install Windows XP
867717 Recordable CD or DVD that contains data appears blank in Windows XP
810805 Some files and folders vanish when you try to copy items from hard disk to CD-R or CD-RW