I got a Windows XP SP2 CD down to 400mb. I stripped it of all the languages and keyboards but English/united states. I also went in and disabled hibernate, and system restore. I also set some services to disabled such as search, index, firewall, etc, and SFC to speed up installation. I also added a default workgroup and company, along with a key. The CD is 400mb with RyanVM update pack 2.1.8, addons, directx, and framework 1.1, and 2.0. I also added a 40mb folder called goodies which include a theme and some other stuff. Haven't tried it yet, but it should work.