This has been a wonder of mine for quite a while. It seems every forum I go to only has some vague or uncertain answer to this question. It doesn't seem like a hard one. This forum appears to be very knowledgable though, so I'll ask here. I've always wanted to know how the computer vendors (like gateway and dell) do OEM installs of windows. What is common about all of them is that the windows cd is never needed later on(obviously because the source files [i386] have been copied to the hard drive). But it's not that simple. As a normal end user, my best bet for doing a fresh install of windows (XP) is to boot off the install cd and just let it go. The thing is, it never offers me the option of having Setup copy the i386 folder to the harddrive locally and running setup off of that. There is always the boot-disk -> xcopy -> winnt.exe method, but it seems like there should be an easier way. You can copy your i386 folder after installation, but your paths will be messed up and you will always have to indicate that the source files are located at C:\i386. WINNT32.exe has the /makelocalsource switch, but that can only be run from a 32 bit environment (like winpe or something, or if i was installing as an upgrade). So how is it done? Is there a way to do this during an unattended install? Maybe somewhere in the answer file that tells setup to copy i386 to the drive during the text setup phase? I always see a $OEM$ folder within the i386 folder on preinstalled machines which suggests an unattended install was done. But the guides for doing an unattended install always tell you to have your $OEM$ folder at the same level as the i386, not within the i386 folder. In earlier versions of windows (95,98,ME), the source files were located in C:\windows\options\cabs. Does anyone else here see where I'm coming from? Thanks in advance. -betamax