after intergage IE7,　if you burn CD and install form CD boot, everything is ok.
but if you copy XP file to hard disk and use winnt.exe setup system from dos mode. in copy file stage,will report many many file was missing...

i know where is problom ,but i hope nuhi repair it in nlite 1.3 version.
when nlite 1.21 inteage ie7, it didn't modify dosnet.inf correctly, many IE7 files are lang filename ,not 8.3 name . so ,if you install from dos-mode ,thoese file can't been copy to system driver.

winnt.exe is the only method which needs 8char file names and since not much people are running it like that I chose not to work that extra.
Try winnt32 or boot from cd.