Update 1: OK! by adding the following settings to the above SFX file, I made this thing working. However it is NOT FULLY automated. Under Advanced SFX Options I mention a "path where to extract the files" c:\MSUpdates. During Windows XP setup, it asks me to click on NEXT so that it can extract the required files. Could some one please point what additional settings need to be made to fully automate this process. Thanks in advance.