I have tried installing Windows with IE7 integrated, and it comes out to a failure! During installation of the GUI part of Windows XP an error message appeared saying a dll registry entry cannot be found. Later after the installation IE7 fails to work reporting an DLL file is missing, tried to put that DLL file into the installation folder, an error would come out saying the system cannot find about:blank!! I strongly recommend NOT to integrate IE7 into the installation of Windows, the best way out is to hack the installation source, repack the installation of IE7 and ONLY add an entry in the SVCPACK.INF