It is the process by which you incorporate service packs right into the
W2K or XP installation directory or setup. This is new to the NTx
family. Under NT4 and earlier, there was no way to do this and if you
had to reinstall, you had to start w/ the orginal CD and then apply your
latest SP as a separate step. This was a real problem for people dual
booting NT4 and W2K if the system partition or boot volume were NTFS,
since W2K converts all NTFS volumes to NTFS5 automatically, but NT4
could not even read NTFS5 volumes until SP4 for NT4.
In a nutshell..it is a way to update CD based OS images with the latest
Service Pack and/or Hotfix files, typically done with a RIS image. Here is a
way to do it and this applies to later SP versions.