i can confirm that latest version of nLite (1.2.1) actually slipstreams IE7 i.e. overwrites IE6 files and add entries to TXTSETUP.SIF, DOSNET.INF, SYSOC.INF ..etc. As it is sliplstreamed it cannot be uninstalled and no activation or WGA check is needed while slipstreaming or installation. The terminology of slipstream and integration is a little loose and a lot of time people say integration when they actually mean slipstream. As far as i know nlite slipstreames all SP, hotfixes and IE7 but refers to them as integration.