Will it be ok if i use NLite to slipstream my XP, then Hotfix it with Ryan VM's Updatepack using his integrator (the one given on his website) and then further modify my cd using NLite again??? Any help would be greatly appreciated.

u can slipstream ryans pack using nlite.

Can i further slimdown my package using NLite?

You Must add Service packs into your Xp then RyanVM's pack before you removing any components

the answer is yes u can go slim down

i do all in one shot: adding update pack and addons then slim down and add unattended and tweaks.

Cool, thanks alot guys...