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Copying i386 folder to you c:\ drive

Copy Windows XP Installation CAB Files to Local Hard Disk SourcePath

This is what I did on my Windows XP computer to make sure that i didn't need to insert the installation disc anymore.

1. Insert Windows XP installation disc to computer. if the CD drive is D: drive.

2. Copy the i386 folder from D:\ drive to C:\ drive. Now the C: drive should have an i386 folder to which looks like C:\i386\

3. Go to Start > Run, type regedit and click OK.

4. Navigate to the path below.

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft
\Windows\CurrentVersion\Setup

5. At the right pane, there should be a name called SourcePath with the Data value as D:\. Double click on the SourcePath and change the value data to C:\

What about Windows Updates.....

You may be asking yourself how does sfc.exe know how to check for updated Windows system files? Well during OS upgrades, service pack installations etc.. the dllcache folder should be updated with these new files.
As an example the recent Windows XP Hotfix - KB828035 updated the system file wkssvc.dll A new version of the file was placed in C:\WINDOWS\system32 and a copy in the cache: C:\WINDOWS\system32\dllcache A copy of the old system file is archived in: C:\WINDOWS\$NtUninstallKB828035$
There is another location the Windows File protection service uses and that is the I386 folder in C:\WINDOWS\ServicePackFiles When you install a service pack, like SP1. Any new system drivers are cached in this location too.
If you have odd problems with running scannow sfc and nothing else in the article has resolved it, then take a look at the entry in:
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\
CurrentVersion\Setup
\ServicePackSourcePath
This should be pointing to the location C:\WINDOWS\ServicePackFiles (assuming C:\ is the boot drive.)

How to install Windows from the I386 folder

Most people cannot figure out how to install Windows XP, 2000, or 2003 from the I386 folder. It is really quite simple. They are looking for a file named Setup.exe or Install.exe. Well, it's neither of them. If you have Vista or 2008 or newer like Windows 7 there is no I386 folder that you can install from.
I guess Microsoft did not want just anyone to install Windows without inserting the CD and using the Autorun. But Autorun does not work if you are installing from a DOS window, so now what.
OK, here it is plain and simple, if you open the I386 folder and scroll down to the W's you will find Winnt.exe and Winnt32.exe. The Winnt32.exe is the setup program used when you are in Windows. The Winnt.exe file is for DOS.
However, I have found that sometimes I run across a Windows 2000 installation CD that errors out when I try to use the Winnt32.exe. So I simple start the install while in Windows using the Winnt.exe file. It's a little slower but it works fine.
If you want to install the Recovery Console, you need to use the switch /cmdcon when starting Winnt32.exe. This switch only works on the Winnt32.exe file.
Below is a list of switches that you can use, Winnt32.exe can handle up to 8 switches.