Just to add that I also had the same problem... I have 8 cd drives, so I thought it would be wise to point to the real cd source in the xpcreate.ini. Once I did that, I got the "cannot find bootimg" error and that was that. Removing my edits in xpcreate.ini did not help (still the same error). Manually extracting the bootimg with bbie and renaming/placing it in the right folder (as per instructed in this thread) did the trick. Just fyi and many thanks for the great utility!