I used a free utility called nLite and made an xp install cd w/ SP2 slipstreamed. Total size of the cd = just under 250 MB! Stripped out almost all unwanted windows services, applcations and features.
nLite:
http://www.nliteos.com/
btw, this stripped version is running quite stable and extremely fast on a celeron 433 w/ 128 RAM.
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