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They use an image which has been prepared using the tool "sysprep" this tool removes all the personal data from the image and can give you selection of options at next boot up.
The stage you are talking about is the mini setup which asks you to enter cd key, users and area.
You can find this tool on the XP install cd under SUPPORT\TOOLS\DEPLOY.CAB
To find out how to use this use the help files which give quite a detailed explanation of use sysprep and the other tools.
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