You want the latest service pack files to be included in the distribution media or location from which you deploy Windows XP to clients.
To slipstream a service pack into a build, follow these steps.
Create a directory called c:\winsp, and copy the downloaded service pack file there. I'll assume the service pack file is named ws2k3sp3.exe.
Extract the service pack to that directory by executing the following command from the command line or from Start Run: ws2k3sp3.exe -x.
Now, update the files from the regular Windows distribution CD with the new service pack files by executing the following command from the command line or from Start Run: D:\wins2k3sp3\i386\UPDATE\UPDATE.EXE -S:C:\windist.
The files are updated and the process is complete. Slipstreaming is an easy way to make sure new systems are updated before they're ever put into production.
To apply hotfixes to an installation while it's in progress, you must use an unattended installation and call the cmdlines.txt file. The following steps are necessary:
Create a distribution folder.
Create the answer file unattend.txt by using the Setup Manager tool. unattend.txt will contain any computer-specific information needed by the commands in the cmdlines.txt file.
Create the cmdlines.txt file by using the Setup Manager tool. cmdlines.txt is a file that contains the commands that would run during the GUI installation. These commands can be hotfix installation commands as well.
Add the I386 folder from the Windows installation CD-ROM to the distribution folder.
Add the unattend.txt and cmdlines.txt files to the \I386\$OEM$ subfolder.
Add hotfix executable files to the \I386\$OEM$ subfolder. (Hotfix files are named six-digit-number.exe, where the six-digit number is the number assigned to the hotfix.) Hotfix files can be downloaded from Microsoft's web site.
Add lines to the cmdlines.txt file, which is a file that must be available if a Windows automated installation requires the running of different code (for example, installation of applications or addition of hotfixes) after the operating system is installed. Thus, to install the hotfix Q123456.exe, you use this line in the [Commands] section of the cmdlines.txt file:
Since deployment and initial installation is now so convenient, you will likely find yourself longing for a streamlined post-setup process. One of the most common tasks that must be performed before you can hand off a computer to an employee is installing the latest service pack. This is especially important in light of the latest wave of worm attacks: newly installed machines can be infected with these worms before you even have a chance to install patches!
All hope is not lost, however. Using a special command line function of the service pack executable, you can instruct any Microsoft NT operating system-based service pack to replace old files in a central distribution share with updated ones. This process, known as slipstreaming, works very well with RIS images, because you already have the requisite distribution share. Let's walk through the process. You'll need the network/administrative (in other words, the full) version of the service pack for your respective platform.
To have RIS installations apply hotfixes, you must do the following:
Ensure that patches reside on an accessible network share.
Configure RIS to install the appropriate service pack.
Add script lines to the [GuiRunOnce] section of the unattended installation file, as shown in Recipe 2.4.
Recipe 2.4 for installing from an unattended installation, and Recipe 2.6 for installing from Remote Installation Services