This is a tip I learned some time ago on how to make a Windows XP CD bootable. This should work on most cases as I have never heard anyone complain that this did not work.
Here are the steps:
1. Make a directory to store the integrated (slipstreamed) OS:
mkdir <DEST DRIVE>:\XPSP2_Int\Pro
2. Copy my Windows XP w/SP1a to my hard drive:
xcopy <CD DRIVE>: <DEST DRIVE>:\XPSP2_Int\Pro /E
3. Extract the XP SP2:
<CD DRIVE>:\xpsp2.exe /X:<DEST DRIVE>:\XPSP2Temp
4. Integrate, or slipstream XP SP2:
<DEST DRIVE>:\XPSP2Temp\update\update.exe /Integrate:<DEST DRIVE>:\XPSP2_Int\Pro
5. Make the bootable CD-ROM by following the instructions here.
That should be all you need in order to create a bootable CD for Windows XP SP2. More tips & tricks coming soon.