It always spooked me when nLite would give me this warning that I HAD to create another account for it to work. However I've discovered that I don't have to create another account. I just have to make sure OOBE is enabled then I can ignore the warning and start the nlite process.

The Administrator account works when created in OOBE. With this, Windows doesn't show the login screen on startup, it just boots straight to desktop.

Yes you DO HAVE to create an other account for it to work, and that's exactly what you do with OOBE, so I don't get your point. OOBE is not the workaround, it's the default way to install XP.
Using OOBE, you do not "create and auto-logon the administrator account", you create an other account with admin rights. The administrator account is already built in and sort of hided in XP Home, that's why you auto logon the 2nd account if it's the only one you create.

My point was that nLite would move me to the "create account" section and warn me that me I MUST create an account. Since this warning doesn't mention OOBE, it implies that you have to do it from the "create account" section if jumps you to. This can confuse someone who has never integrated Home edition into believing that he MUST set a seconf user through nLite. (like me)

I just hoped this elucidation might help someone else.

Ok. Then you mean the message should only appear if OOBE was removed or "skip OOBE" was ticked. That makes sense and apparently the program doesn't make the link as such.
Still your statement "The Administrator account works when created in OOBE" was not exact.