nLite has always caused me grief for some reason. The most annoying problem is when you are installing a nLited XP disc and the setup program can't randomly find install files. My main XP disc is setup as follows:
1. SP3 is integrated using Microsoft's official method (use the /integrate switch with the service pack executable)
2. Integrate modern mass storage and LAN drivers using DriverPacks:
http://driverpacks.net/
I usually only stick to those two classes of drivers, its enough to get a machine up and running to download any other drivers you need. I let Windows Update patch the machine if I plan on doing anything network related and later apply the POSReady 2009 registry key to get post 2014 updates.