Does your Dell Reinstallation CD (aka: system restore CD) or OEM restore CD look similar to this:

If it does look similar to this, then an automated SP2 slipstreaming tool may not create a proper image unless it removes the SVCPACK folder and corrects for it.

The steps listed in manual method of slipstreaming allow you to apply the changes needed in order to create a proper XP SP2 slipstream image - that you can burn to a new install CD.

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Some OEM install CDs have additional files and folders (ie: $OEM$ ) that are not found on the Microsoft Windows XP install CD. If present, these additional files and folders also need to be copied to the CD folder.