Creating a slipstreamed installation source for SharePoint and MOSS is quite straightforward, and in this post we’ll create a slipstreamed installation source for MOSS with SP2;

Choose a folder in which to create the installation source: F:\Sources\SharePoint Server 2007\SP2slipinst

Copy or extract your base (standard installation media without any other slipstreamed updates) WSS or MOSS installation media to that folder as shown below. If your installation media is compressed, you can extract it using this command (using the MOSS installation as an example):

OfficeServer.exe /extract:F:\Sources\SharePoint Server 2007\SP2slipinst

The service pack updates, and any other cumulative updates you want to slipstream into the installation source, will be extracted and copied into the \Updates folder as shown below.

The order in which you extract and copy these updates to the \Updates folder is important. The order goes something like this;

1. Extract and Copy WSS Service Pack Updates
2. Extract and Copy MOSS Service Pack Updates
3. Extract and Copy WSS Cumulative/Hotfix Updates
4. Extract and Copy MOSS Cumulative/Hotfix Updates

Extract and copy the WSS SP2 updates to your SP2 slipstream installation source by entering this command;

wssv3sp2-kb953338-x86-fullfile-en-us.exe /extract:"F:\Sources\SharePoint Server 2007\SP2slipinst\Updates"

After this has completed, take a look at the \Updates folder, it will contain the WSS SP2 updates.

Now do the same for the MOSS SP2 updates;

officeserver2007sp2-kb953334-x86-fullfile-en-us.exe /extract:"F:\Sources\SharePoint Server 2007\SP2slipinst\Updates"

After this has completed, take a look at the \Updates folder, it will contain the MOSS SP2 updates.

Perform the same procedures for cumulative/hotfix updates you want to apply to your slipstream installation, taking care of the extract/copy ordering for WSS then MOSS. 

Your SP2 slipstreamed installation source is nearly ready. Notice above the 2 files highlighted, if your installation source is for MOSS, delete the wsssetup.dll file.

The slipstreamed installation source is now ready to use or burn to a DVD.