I wasn't counting the time it takes to have a windows dev machine
configured. I also didn't count the time it takes to build the computer
itself

(joke).
Good luck with your build. Let me know if you have further questions.
I used the TA output as an input to the component designer. Then I
imported the result into a new project in Target Designer. I did this
according to this MS video "Tutorial: Building a Windows XP Embedded
Device". I did not do as the video did where he changed the c drive
to d drive. I built the image copied it to the target machine and
rebooted it. It worked better that the first version I built in that
it got past the black and white bar graph window where it said booting
windows. After it showed that window though, it went to a blue screen
and said BAD_SYSTEM_CONFIG_INFO. So, I figured that c: to d: thing
the guy did in the video probably matters even though I am on a
different machine. As such, I changed the setting to be d:, rebuilt
the image, deleted the existing files on my d drive on my target
machine, copied in the new image and rebooted. Same error.
BAD_SYSTEM_CONFIG_INFO. At this point the problem is either the
NTLOADER thing you mentioned or its just the problem with copying the
files to the target machine. For instance, i can not delete all the
files in the d: drive. There are sharing violations on the hidden
directories. The other possible problem is the NTLOADER thing. In
the video, the guy is using windows XP as his development box. I am
using win2k and its probably incompatible. Could this be the problem?
I'll reinstall/repartition this computer tomorrow so that I can be
closer in spec wth the standar setup.