be careful with 'tinyXP' and other versions like it. they are illegal, pirated versions not distributed by Micro$oft. any XP version you can download is not a legit copy (with the exception of developer/test versions that are downloadable, but not available to the general public). since basically anything you download is not a legit copy of XP, you never know what's in the file. there could be all kinds of harmful crap in it (it may install fine like any other OS, but it might automatically self-install malware, etc without your knowledge or consent.
nLite is always the best way to go. it allows you to customize your OS exactly the way you want it, and since you use your own [legal & legit] XP copy to make it, you know there's no hidden malware in it.
-you can strip out all the bundled crapware that comes with an OEM XP disc.
-you can remove all the generic XP drivers and add your laptop specific drivers (they will be installed automatically during the XP installation).
-you can remove lots of unnecessary files, fonts, languages, services, etc.
-you can slipstream SP2 or SP3 into the install so you don't have to waste time downloading/installing countless windows updates and hotfixes later on.
-if you complete the 'unattended setup' section then you can make the installation completely automatic (you don't have to be near the computer to answer annoying prompts every few minutes like you do with a regular install)
with a properly nLited XP install, you will have a much faster system then your OEM XP originally had on it. just keep in mind that your goal should not be to have to smallest installation possible, because you'll end up removing/disabling features that you want/need. your goal should be to have the lightest installation that still has all the features you want and/or need. if you're not sure what you need or don't need then check out the
nLite forums.
good luck