Originally posted by dakta
I stress on the legal, I understand that making a cd image is not possible with modifications.
Making an ISO image is 100% legal. Linux distrobutions use it pretty much exclusively. It works just like a Windows CD. The only hassle is that you have to purchase a program that will "compress" the files into a .iso format, and they cost around $30USD (UltraISO). You might be able to find a "free trial" or even freeware edition of an ISO utility. Essentially, an ISO is a bootable ZIP file, although, ZIP files are focused on compression to save space, while ISO's are not.
Either way, i believe it is only legal so long as you are not trying to sell the new Windows CDs with all your drivers on them. If you only have ONE CD and ONLY you use it, you should be fine.
Also, google "slipstream XP CD." If it was illegal, why would there be so many results?
As a final note: i did a little research and slipstreaming is creating an ISO image of Windows, and burning it to a disc, exactly like Linux.