Your posts are getting confusing. I'll clarify....
Win2K has:
- MSXML 2.5 version 8.0.6730.0
Win 2K can be upgraded to all of these:
- MSXML 2.5 version 8.0.7002.0
- MSXML 2 SP6 version 8.30.9531.0
- MSXML 3 SP7 version 8.70.1104.0
- MSXML 4 SP2 version 4.20.9828.0
- MSXML 6 version 6.0.3883.0
WinXP SP1 has:
- MSXML 2.5 version 8.0.6730.0
- MSXML 2 SP? version 8.30.8709.0
- MSXML 3 SP3 version 8.30.9926.0
WinXP SP1 can be upgraded to all of these:
- MSXML 2.5 version 8.0.7002.0
- MSXML 2 SP6 version 8.30.9531.0
- MSXML 3 SP7 version 8.70.1104.0
- MSXML 4 SP2 version 4.20.9828.0
- MSXML 6 version 6.0.3883.0
WinXP SP2 has:
- MSXML 2.5 version 8.0.7002.0
- MSXML 2 SP? version 8.30.9529.0
- MSXML 3 SP5 version 8.50.2162.0
WinXP SP2 can be upgraded to all of these:
- MSXML 2 SP6 version 8.30.9531.0
- MSXML 3 SP7 version 8.70.1104.0
- MSXML 4 SP2 version 4.20.9828.0
- MSXML 6 version 6.0.3883.0
Win2K3 SP1 has:
- MSXML 2.5 version 8.0.7002.0
- MSXML 2 SP? version 8.30.9528.0
- MSXML 3 SP7 version 8.70.1104.0
Win2K3 SP1 can be upgraded to all of these:
- MSXML 2 SP6 version 8.30.9531.0
- MSXML 4 SP2 version 4.20.9828.0
- MSXML 6 version 6.0.3883.0
QUOTE (the_guy @ Oct 5 2006, 11:34 PM)

What I meant was, XP SP2 includes MSXML 3 SP5, and if I were to slipstream MSXML 3 SP7, would there be duplicate entries? They both include msxml3(a/r).dll.
No; HFSLIP only adds entries in TXTSETUP.SIF and DOSNET.INF for new binaries, not updated binaries.