First of all, I must say that nLite is as legal or illegal as you make it. Using a knife to cut food is legal, using a knife to cut someone isn't. The same concept works with nLite. As long as you have a valid Windows XP CD and a license key the FBI shouldn't bust down your door with Bill Gates pointing at you going, "That's the one!" and your conscience should be clear. Okay, so now that that's done...
- Install nLite onto your system and run it.
- nLite will ask you to point it to the CD drive with the XP CD in it. Do it. Do it now!
- After that, it will take you to the presets menu where you can select a preset Windows XP setup. Since you don't have any (I assume), ignore this and go to the task selections menu.
- From here, you can strip your Windows installation as far as you want it, or even add things (remember to green light the "components" section next to "remove"). Anything you green light here will be a step.
- When you get to the "components" section, you can remove whatever you want. Don't remove too much, though, since some things you'll want to keep your operating system running smoothly. Don't worry, though! nLite has a compatibility feature to ensure you're not ripping out anything important.
- Once you're happy, click "next" to begin building your custom installation.
- Once you're done, port the .img file to a CD (don't burn the .img file to cd; just copy it as a file)
- Put the .img file into the "Windows" folder with the "xp.img" file
- Finally, rename it to "xpinstallcd.iso"
Okay, grab yourself some water and prepare to install XP!