When you attempt to use Windows 2000 to slipstream (/integrate switch) Windows XP Service Pack 2 into a folder that contains the files and folders from a Windows XP CD-ROM, you cannot.
To workaround this problem:
01. Open a CMD.EXE window.
02. Copy the contents of the Windows XP product CD-ROM to C:\WXP_SlipStream.
04. Copy the download WindowsXP-KB835935-SP2-ENU.exe to C:\WXP_SP2.
05. Type CD /D C:\WXP_SP2 and press Enter.
06. Type WindowsXP-KB835935-SP2-ENU.exe /x and press Enter.
07. Type C:\WXP_SP2_X and press OK.
08. Type CD /D C:\WXP_SP2_X and press Enter.
09. Type cd i386\update and press Enter.
10. Type ren setupapi.dll setupapi.old and press Enter.
11. Type update.exe /integrate:C:\WXP_SlipStream and press Enter.
NOTE: If desired, you may know delete C:\WXP_SP2 and/or C:\WXP_SP2_X.