Hello all. I am offering my assistance to anyone trying to do this, as it took me a day 1/2 to figure out even using detailed guides i found online.. The best one i found is this http://www.vernalex.com/guides/sysprep/video.shtml. It includes a Flash video and detailed instructions.. What you'll need is a gameplan, it always goes smoother when is all planned out.

1. Do a fresh install of XP Pro on the PC you want to image
2. Activate windows & update till box is fully patched
3. Create a new user called "User" and give admin rights. This will be used after you roll out the image onto a new PC. You can "Copy" the user profile from "User" to whatever the end-user's profile will be. This can be done by Right-clicking "My Computer" going to Properties --> Advanced --> Click settings under "User Profiles" -you must be logged out of "User" to copy it to another profile
4. Install any software you want on the box
5. Get the latest version of Sysprep from microsoft explained in video at Vernalex.
6. First run setupmgr.exe to create the INF file that will automate the windows setup process (about 3 clicks instead of 35 next next next's).
8. Take a clean image (using an external HD is ideal - my image was 2.6GBs) This will be a backup point - you can only run SYSprep 3 times before it locks you out and you have to reinstall. this save's you incase you hit that limit.
9. Run Sysprep, by clicking "reseal" and be sure to check "minisetup" and select "QUIT" from the drop down menu - The setup will end when its done and you can make your final image to be used in the roll-out. (DO NOT REBOOT until you've made your image)
If you reboot before taking an image, the setup will run, unregister your copy of windows and take you back a few steps. If you use the "remember admin password, make sure you encrypt it in the INF file. that's explained in Vernalex's guide as well..
10. Your image is made... Go to the PC you want to roll out, connect the External drive, Put the Norton 10 CD in the drive. Turn the PC on and boot to the CD when you get the "Press any key to boot from CD" message. This will bring you into a Norton GUI that you will roll out from. They call it "Recover".

Hope this helps. You won't get it right the first time, that's why the  image in step 8 is crucial. If you mess up, restore to that and you're golden.