Guys, thanks for the reply. I think i need to clarify some stuff. I am not adding any nVidia drivers to xp until after the installation (which has nothing to do with this issue). Also I mentioned that the image made works prefectly well on VMs, but NOT on the actual installation. This is caused VM does not directly supply the guest OS with the real graphical interface, but a generic one (until you install the extra package or whatever after the guest OS is installed)......... I also said, from previous experiences, the bit (13 min remaining blah blah blah) is the bit that the setup tries to install my monitor/graphics card. Also, to johnhc, i dont think that the issues that you pointed where the issue, since without removing any services or packages AND adding the optional stuff like Launch Explorer in a differnet process, xp installation worked prefectly well (what im using right now).... What I am guessing is that one of the services/packages have something to do with the setup of monitor/graphics card. To be more precised, one of the services/packages REMOVED (lookup the session.ini file i posted earlier) has something to do with this problem.... I hope this clarified some stuff... Again, thanks for the input guys. I really apperciate it! Mo