ive tried it!
and since i dont want to start a new thread about it im jumping this old thread... sorry
this thing works and its basically a tool for network administrators that can check for viruses and fix problems on a computer without the need of the windows that installed on the computer itself! it all run from the CD!
if some people heard about Knoppix (Almost full linux that boots from a CD) it similar to that.
heres a few links to get you started if youre interested:
pebuilder main site
A quick guide to make a bootable win CD with a familiar win platform
search for plugins (there are tons of them!) for bartpe! they are very useful!
about the size:
the first try with a win XP pro (sp1a) took 170MB (with frodoplayer folder inside)
the second try of win XP Pro (sp2) with reatogo (win desktop platform) took 440MB
thats really small and can be smaller since ive put a lot of unnesecerry tools inside