How to slipstream Windows XP with SP2

It's been a while since I've covered slipstreaming, or combining, a service pack into Windows (link), but the release of Windows XP Service Pack with Advanced Security Technologies (hereafter referred to as SP2) warrants some discussion. That's because XP SP2 is a huge change from the original shipping version of XP, offering as many new features and capabilities as a major new Windows version. For this reason, many people are going to want to install XP SP2 directly the next time they install Windows, and skip the time-consuming and potentially insecure step of installing the initial XP version first, and then applying SP2 after the fact.