The setup notes with the Intel Chipset drivers contain a method for integrating their drivers in an XP CD. If I use nLite to add drivers and point it to the same folder will it work the same or do I need to go through Intel's methods? It is hard enough to tell if the drivers are installed properly when I use the normal interactive install, I don't want to think they are being installed only to be bitten in the end but it sure is easy to use nLite to integrate all of my drivers.

Try to clear What do U want ?
If U want to integrate chipset driver using nLite, extract *.exe (INF) somewhere and locate them using nLite, It will automatically integrate drivers into Ur XP Source.
If U want to integrate chipset driver using Intel's Method. Add the Command-Line and U can execute them in CMDLINES.TXT, RunOnce.

To Create using 2nd method look for reference : http://unattended.msfn.org/

I just want to know if I go through and extract the INF files from the setup and then use nLite to integrate them, will it work correctly?

I know using Intel's manual method will work but it seems like a lot of hassle. Just want verification that using nLite and these drivers work.

Works 100%

I integrated mine with no apparent problems.