Create a new XP CD slipstreamed with SP2 (and updates it you want).
The simplest way to create a Bootable Windows XP Pro or Home
Installation CD Slipstreamed with SP2 is to use Autostreamer. You point to your XP
Pro/Home CD, the SP2 Service Pack .exe file, give it a path to write the .iso file
to and off it goes.
In 5 or 10 minutes you have a .iso file that you can burn to CD with almost any
CD burner program you want to use. I used Roxio 7. There is a good freeware burner
called DeepBurner
which will do this also.
An excellent alternative is nLite. It allows you to merge SP1/SP2/Windows
Updates into a new XP CD image that you can install from. Takes a bit of fiddling
with but worth the effort since it also allows you to pre-answer all the questions
asked during install so all you have to do is boot the new CD, select where you want
to install, format or not and go to lunch. When you come back the install is finished
and your are at the latest Service Pack and Update level. See here: