While there are many ways to skin a cat, I've found that Nlite is the best utility for reasonably competant computer users to Create a customised Windows XP Installation CD.
nLite Features
- Service Pack Integration
- Component Removal
- Unattended Setup
- Driver Integration *
- Hotfixes Integration **
- Tweaks
- Patches ***
- Bootable ISO creation
It's great for removing things like media player, languages etc from your install, and intergrating software, drivers, and patches. I use it to include the nvidia RAID drivers on my xp cd so I don't have to install them at the start of the windows install.
http://www.nliteos.com/
Application addons, And hotfix packs etc are also available on the addons page.