Using nlite 1.4.1, xp sp2.2180 and sp3.3264 to create a new build I find that trying to set in Options > General > Folders section Temporary Folder=%SystemDrive%\TMP after windows install finish the temporary folder is stil set to documents ans setting ... ( older value ). In previous builds maded on same conditions ( even on sp3.3244 build ) Temporary Folder=%SystemDrive%\TMP worked fine.