1. Copy the XP CD to C:\xpcd 2. Copy the SP1 to C:\ 3. Rename it to sp1 4. Go to Start>Run and type C:\sp1.exe -x 5. Choose the location C:\sp1 for the Extracting 6. After the extracting go to Start>Run and type C:\sp1\update\update.exe -S:C:\XPCD and that's all, Now you got an updated XP ready to install burn it and install.