Base on response in this poll:
http://forum.eeeuser.com/viewpoll.php?id=9029

There's plenty of guides out there to Install XP, as well as NLITE, I won't go into details.  In this post, you'll get my tips and tricks to help your XP install a smooth one.  In this guide, you'll find:

1) My take on NLITE, and SP3 integration
2) Post install tips
3) Move XP Write Process to SDHC Card
4) Installing Office 2007
5) Cleanup
6) Ghost your install

If you haven't done so, download the following:

1) Nlite
http://www.nliteos.com/download.html

2) Windows XP SP3 RC - KB936929
http://www.microsoft.com/downloads/details.aspx?familyid=75ed934c-8423-4386-ad98-36b124a720aa&displaylang=en

3) Universal Audio Architecture (UAA) Hotfix - KB835221
http://couponmeister.com/blog/HD_Audio/KB835221.exe

4) BIOS Update Utility
thanks to aRIf in (http://forum.eeeuser.com/viewtopic.php?id=6873)
http://dlsvr03.asus.com/pub/ASUS/EeePC/EeePC4G(701)/AsusUpdate_XP_071211.zip

5) BIOS versions
http://forum.eeeuser.com/viewtopic.php?id=3485
(I have 0511 installed, works like a champ)

6) Windows Desktop Search
http://download.microsoft.com/download/9/b/d/9bd9c91f-7a74-4084-9198-49d2cfab7947/WindowsDesktopSearch-KB917013-V301-XP-x86-ENU.MSI
(Because I think some of you will install Outlook 2007)

7) Optional Office 2007 SP1
http://www.microsoft.com/downloads/details.aspx?FamilyId=9EC51594-992C-4165-A997-25DA01F388F5&displaylang=en

If you don't have a USB CDrom drive, it's ok, you can get one of these for 19.99:

http://www.newegg.com/Product/Product.aspx?Item=N82E16812232002

and use any desktop CDrom drive.  Very useful, ironically, I had a spare ASUS 52x CDrom drive laying around.  :-D

Use the above guide to NLITE and Slipstream your SP3 in #8 step above.  Don't worry, sp3 will not expire.  ;-)

I would recommend leaving everything in Services alone.  As for OS related items you can safely remove most of the black text items, I chose to not remove the following:

Color Schemes
FAT to NTFS converter (if you choose to remove this, you will not be able to format FAT32 during install)
Input Method Editor
Local Security Settings
Shell Media Handler
User Account Pictures
Zip Folder

I recommend unattended install, the options in the next sets of screen are pretty straight forward, each has his own preferance, if you want to see what I choose, look at the following NLITE ini, copy and make nlite.ini file and save in preset folder (C:\Program Files\nLite\Presets):

----------------NLITE.INI---------------------

[Main]
Env = 1.4.1 - 2.0.50727.832.Microsoft Windows NT 5.1.2600 Service Pack 2
Target = Windows XP Professional SP3 - 5.1.2600.3264 - English (United States)

[Tasks]
Remove Components
Unattended Setup
Tweaks
Create a Bootable ISO
Options

[Components]
;# Compatibility #

[KeepFiles]
msconfig.exe

[RemoveFiles]
clock.avi
yahoo.bmp
swtchbrd.bmp

[Options]
ProfilesDir = "%SystemDrive%\Users"
TargetPath = "WINDOWS"
temp_dir = d:\cache

[Patches]
DoSFC

[Services2]

[Tweaks]
Boot and Shutdown-Ctrl-Alt-Del at logon-Enabled
Boot and Shutdown-Do not Parse Autoexec.bat
Boot and Shutdown-Logon Page-Classic
Boot and Shutdown-Numlock-Off
Desktop-Desktop icons size-32
Desktop-Internet Explorer icon-Show
Desktop-My Computer icon-Show
Desktop-My Documents icon-Show
Desktop-My Network Places icon-Show
Desktop-Recycle Bin icon-Show
Explorer-Classic Control Panel
Explorer-Disable Prefix: Shortcut to
Explorer-Remove Send To on context menu
Explorer-Show Drive Letters in front of Drive Names
Explorer-Show extensions of known file-types
Explorer-Show Map Network Drives buttons in Explorer bar
Explorer-Use small icons in Explorer bar
Internet Explorer-Disable Download Complete notification
Internet Explorer-Disable Market Place bookmark
Internet Explorer-Disable Media Player 6.4 created bookmarks
Internet Explorer-Disable Password-Caching
Internet Explorer-Enable Google URL-Search
Internet Explorer-Set Homepage-about:blank
Internet Explorer-Set IE-Cache limit to-8 MB
Internet Explorer-Set Internet Explorer to accept 10 connects at a time
My Computer-Add Administrative Tools
My Computer-Add Control Panel
My Computer-Add Control Panel to Context Menu
My Computer-Add Device Manager to Context Menu
My Computer-Add Event Viewer to Context Menu
My Computer-Add Folder Options
My Computer-Remove Shared Documents
Performance-Disable Info Tips on Files and Folders
Performance-Disable Last accessed Timestamp on files
Performance-Disable Optimize harddisk when idle
Performance-Disable Tracking of Broken Shortcut Links
Performance-Disable Warn on low disk space
Performance-Disable WBEM logging
Performance-Do not cache thumbnails
Performance-Minimal Power Management
Privacy-Remove Alexa
Start Menu-Clear most recently opened documents list on logoff
Start Menu-Disable and remove Documents list from the Start Menu
Start Menu-Disable popup on first boot
Start Menu-Remove Search For People from Search
Start Menu-Remove Search the Internet from Search
Start Menu-Remove Set Program Access and Defaults
Start Menu-Remove Windows Catalog shortcut
Start Menu-Remove Windows Update shortcut
Start Menu-Use small icons in Start Panel
Windows Media Player-Accept Privacy Statement
Windows Media Player-Disable auto-add music to library
Windows Media Player-Disable automatic codec download
Windows Media Player-Disable metadata retrieval
Windows Media Player-Disable MRU
Windows Media Player-Disable silent acqusition
Windows Media Player-Disable starting with Media Guide
Windows Media Player-Enhanced privacy settings
Windows Media Player-Optimize fullscreen mode behavior

[Unattended]
ComputerType = Default
HibernationNo
FirewallOff
CustomLocales
DisableSRestore
MaximumDataStorePercentOfDisk = 12
RestorePointLife = 30
DefaultStartPanelOff
DesktopTheme = Default||
AutoUpdates = 4
AutoUDay = 5
AutoUHour = 15
ProgFilesPath = "\Program Files"

[NetAdapter1]
connname = ""
macaddress = ""
ipaddress = "192.168.0.1"
subnetmask = "255.255.255.0"
defaultgateway = ""
dnsserver1 = ""
dnsserver2 = ""
winsserver = ""
netbiossetting = "0"
ipxnetworknumber = "00000000"
ipxnetworkframetype = "0xFF"

[NetAdapter2]
connname = ""
macaddress = ""
ipaddress = "192.168.0.2"
subnetmask = "255.255.255.0"
defaultgateway = ""
dnsserver1 = ""
dnsserver2 = ""
winsserver = ""
netbiossetting = "0"
ipxnetworknumber = "00000000"
ipxnetworkframetype = "0xFF"

[NetAdapter3]
connname = ""
macaddress = ""
ipaddress = "192.168.0.3"
subnetmask = "255.255.255.0"
defaultgateway = ""
dnsserver1 = ""
dnsserver2 = ""
winsserver = ""
netbiossetting = "0"
ipxnetworknumber = "00000000"
ipxnetworkframetype = "0xFF"

[GuiRunOnce]

[Drivers]

[Hotfixes]

------------END NLITE.INI---------------------

You'll notice I have my temp_dir set to d:\cache, it's important to format your SDHC card in advance and make that folder prior to installing XP.

Whichever method you choose to install XP, CD or USB, make sure to format your drive NTFS.  Install away.

Once done, perform these steps (presume that my D: drive is my SDHC card):

1) Make another Admin user, log out, and into this user account (you'll see why you need to do this soon).

2) Make folder in D:, then move IE6 Temporary folder to your D: drive, I moved mines to d:\cache, force logout, login again to same user.

3) Move My Document Folder to D:, mines is D:\Files

4) Right click My Computer, and goto Advance Tab, click on Environment Variables button and change User and System temp variables to point to D:, mines is d:\cache.  Do not Disable Paging file just yet.

5) Make another folder for Documents and Settings (Mines is D:\Users)

6) Bring up registry editor and goto these keys:

[HKEY_CURRENT_USER\SOFTWARE\Microsoft\Windows\CurrentVersion\Explorer\User Shell Folders]

[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Explorer\User Shell Folders]

In both, change the AppData folder where you want it to be, mines happen to be in:

D:\Users\USERID\Application Data

(Change USERID to your user ID, you'll see this in the above HCU key)

In HCU, directories to change are:
Cookies
Favorites (I have this set in my document, makes sense as they are just important as my files d:\files\favorites)
History
Local AppData
Local Settings

Personal, Pictures, and Cache should have already moved if you perform step 2, 3 above.

7) Logout of this user ID, and back into Admin ID, copy:

C:\Documents and Settings\All Users\Application Data
C:\Documents and Settings\USERID\Application Data
C:\Documents and Settings\USERID\Local Settings

to your D: drive (Mines is in D:\Users)

The reason why you need another ID to do this, is because Windows locks files in Local Settings and prevents you from copying them while that USERID is logged in.

8) Reboot!

9) Login in as user, and update your BIOS, reboot.  Use items 4, 5 download list above

10) Install item 3 in the download list (required for your sound card drivers to work)

11) Install your drivers, updated versions would be nice
http://forum.eeeuser.com/viewtopic.php?id=7791
I normally do not reboot until all drivers are loaded, then I reboot.

12) Reboot!

The rest is optional depends if you plan on install Office 2007.  After you perform the above, you will plenty of room to install Office 2007 (though not the entire set of apps)

1) I install Windows Desktop Search first.
2) Install Office (Word, Outlook, OneNote, Excel, Powerpoint)
3) Have SP1 on D: or USB key, and update
4) http://office.microsoft.com/ Install remaining Outlook update

I also have Photoshop CS2 installed, I can't live without Photoshop, even on EEE PC.  :-D

Time to disable and cleanup

1) It's safe now to Disable Paging File, Right click My Computer, and goto Advance Tab, Click Settings under Performance Box.  Advance Tab, and Change Button.  Set No paging file on C: drive.  (I have 2 gigs of memory, and plan not to use no more then two big apps at any given time.)

2) Services to Disable:
Event Log
WMI Perfomance Adapter

as well any other services that writes logs to C:, I use filemon to look for them.

If you plan to Ghost your C: drive, on some versions of ghost:

Ghost.exe -NTIL

my Ghost version is 7.0 Enterprise, which required the above switch to properly ghost NTFS.

You will notice I didn't change anything with the Administrator Account.  Reason is, when you perform driver related updates or BIOS updates, all your settings point to D: will not show up until USB hardware are recognized.  the Administrator Account is what I use to perform such updates.  ;-)

I'll add more to this list as questions are asked and answer or if I remember any details left out.  I know I can be doing other things right now, like playing Halo 3, but I thought this would help some of you with your XP install.

I had a chance to use my EEE with OneNote, and it's great.  Like the EEE very very much.