If you want to be able to legaly distrubute XP embedded images you first have to buy the Studio (1000.00 USD) The after that each copy of your XPe image is only 99.00 each. But that image is tied back to your studio key. You can download the eval version from MS's website but any build created in a eval version will always expire after 30-60 days, even if you re-compile it on a licenced studio.
So if you wanted to give out the configuration you made, you will have to build it on a licensed studio and make that studio license avaible to anyone who wants to use your build. ( I cant tell you where to get the full studio, but its out there, for long term testing) Oh and its a 1.2GB download.
The time goals you've set should be able to be reached, I was able to build an XPe image that was only 160mb and boots in about 20sec's on that little Intel board offered in the store.
I was only able to get the studio from my vendor (softchoice.com) but here is a link to the eval http://www.microsoft.com/windows/emb...val/trial.mspx