I said this before, and nobody got interested... which really surprises me because XXCOPY is freeware.
Please do you all kindly give a good look at XXCOPY and Reparse Points...
I think it can solve the problem of WinSxS automagically during simple a NTFS to FAT32 copy.
Den, you have evidently NOT read the given link :
There is NOT (anymore) the need to pre-install to NTFS and later copy the install to FAT32. <- tested with Windows 7
7-zip is OK to copy directly from the .wim the files to a FAT32 volume. <- no need for *anything else*, including the otherwise nice XXCOPY
The issue (with 7 32 bit) is the sheer number of Manifest files (and their stupidly looooong filenames) that exceeds the capabilities of the FAT32 filesystem.
I have NOT available/handy a Vista install DVD, it is well possible that a Vista has a "less populated" WinSxS directory and thus works fine, if you prefer the actual "news" are that seemingly there is no need for a pre-install of the system on NTFS.