I only have the infinite loop problem if I open up a previous profile of nlite which includes the hotfixes again that i've already applied to the current ISO i've been working on.. (If that makes any sense). Nlite appears to reapply the same hotfixes on top of the WinXP directory i've already applied them too and it's causes issues.. So how I prevent the component loop problem is to clear out the hotfix screen and then everything is golden. Atleast this is why I was getting the loop problem.. hope it helps someone else. Jay