Slipstreaming means to include the SP3 updates into Windows XP, so that you don't have to install SP3 separately again. Here's how you can do it.
Slipstream Windows XP SP3
I think slipstreaming means removing the unwanted parts of windows. Isn't it? On the other hand, you can add some 3rd party softwares. As i have been using nLite for last one year. Its a great software to customize/automate the Windows Installation CD/DVD..
Yes you are right, but it also includes incorporating updates and new files, nLite is the best software.
is there any other software for customized Windows Installation ?