Download the complete version of SP2. say to D:\ and rename for
convenience as XPSP2. Make three folders, D:\SP2, D:\XP and D:\boot
Go to
http://www.nu2.nu/bbie/ and download the bbie.zip file, extract
bbie.exe into D:\boot
Put your CD in the drive (say letter K

and select all, then copy into
D:\XP
Start - Run the line
D:\XPSP2.exe /x
and tell it to extract to D:\SP2
Start - Run D:\boot\bbie.exe K:
which will make a image1.bin file in that folder
Now you are ready.
Start Run the line
D:\SP2\update.exe /s

:\XP
which will integrate the SP2 files into the ones from the CD in D:\XP
Run Nero. take CD-ROM (Boot) in the New selection. In the Boot menu
choose Image file and browse to that D:\boot\image1.bin (you will have
to select 'show all files') then check 'Enable expert . . . ', and
select No Emulation, and in the bottom box set 4 Sectors. Click New for
Nero's standard compilation. In that open the D:\XP folder to show what
the CD contents are and drag the lot onto the compilation
Burn, selecting 'Finalise disk'