The Slipstreaming is a method of installing updates (service packs in most cases) directly inside the source Windows installation. This article shows you the method to integrate security patches (service packs and more) into your Windows installation. This is the method recommended by all sites (with some exceptions) having a section on creating a custom installation CD of Windows. It is a simple but very risky (unless you have the SP2 and the firewall active) and inefficient which is the establishment of a post install Hotfix (via cmdline or svcpack or the RUN RunOnceEx etc.).
Security Issue:
The security issue is that installing the Hotfix (security patches) is in post installation. Where is the problem some might say?, Well, basically, the first problem appears very quickly in an environment infected by virus as CodeRed, Nimda, Blaster, Sasser. Indeed, all these viruses exploit vulnerabilities existing in the network layer of Windows, but even if the faults are resolved following the installation of the hotfix, the problem is that your network layer is installed and set up almost a half hours before installing any hotfix by following this method, the mean face of middle botched by Blaster or Sasser (most "fast") there are almost 100% chance your computer is infected. The first effect will be that, as your Hotfix has been installed, your computer does not tie together but continue to infect any other computers on your network.
Lack of effectiveness
The benefit of doing the slipstreaming is that your Hotfix need not be installed because the sources already integrated. The great advantage is that you do not install additional phase which will increase the total installation time of your system. Moreover, the more you have to install Hotfix longer duration will be lengthened, which is a strong disadvantage in business to estimate the cost of installing your job given the fact that the installation time n is not fixed.
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