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Thanks to Prometheus for these instructions he posted at the ieXbeta forums:
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Thanks to NameOFtheDAY for the simple Registry fix that allows Nero to create Bootable XP CD's!! Nero was always great for burning bootable images (*.iso) you had downloaded or created with other programs like CDRWin. NOW you can also CREATE the bootable XP CD with Nero - something that never worked before!!

Edit the Registry:

If you are not eXPerienced enough to edit the Registry, download this nero.reg file to do the tasks explained below, execute the reg file and then reboot. (Thanks to oscar2043 for this reg file)

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1) Start -> Run "regedit" and go to "HKEY_CURRENT_USER\Software\ahead\Nero - Burning ROM\General"

2) In the right pane the top entry is "AddISOFileVersion"

3) Right Click on "AddISOFileVersion" and select "Modify"

4) The value will be "1", highlight the value and change to "0" - that's zero.

5) Close regedit, reboot, and then follow the instructions below.

Get the Image File:

You can grab the extracted xpboot.img file (2k) from the 2600 ISO boot image using CDMage. You can download xpboot.img at:

http://home.rochester.rr.com/hessfink/xpboot.img / xpboot.img

boot.bin and xpboot.bin will also work as the image file, As requested, these are also posted for download:

xpboot.bin / xpboot.bin
boot.bin

Create and burn a bootable cd in Nero:

1) Close the "Wizard" and select "File" "New"

2) Scroll down the CD types and select "CD-ROM (Boot)"

3) A New right pane BOOT tab will appear. Select "image File" as the "Source of Boot Image Data" and browse until you point to the "xpboot.img" file you downloaded above, or "xpboot.bin" or "boot.bin" if you already have those files.

4)"Enable Expert Settings" and select "NO EMULATION", Boot Message is MICROSOFT CORPORATION, Load Segment remains default of 07C0, and change Number of Loaded Sectors to 4.

5) Click on LABEL Tab, enter the Volume Label as WXPVOL_EN for Corporate Build or whatever is correct. Enter MICROSOFT_CORPORATION as the "Publisher" and "Data Preparer".

6) Click BURN Tab and make sure "Write", "Finalize CD", and Write Method of "Disc-At-Once" are checked.

7) Click ISO tab to check. The defaults on this tab are correct - they are ISO level 1, Mode 1, ISO 9660, Joliet

8) Click "New" in the right corner to add your files. Add files with Drag & Drop as normal. When you have finished with your files, select the "Write CD" icon or "File, Write CD"

9) The boot dialog box will pop-up again, and if you're paranoid you can double check your settings. On the boot tab your "Expert" settings are grayed out, but still there - this is normal.

10) Select "Write" and burn your bootable CD.

Option: Once the CD is burned you can save your setup in Nero. Then when you want to burn another XP Corporate Boot Disk, just open the saved *.nrb and burn. The saved file is just a list of files and settings.

Now you can create your Boot CD's with Nero without having to use another program when you need to create a bootable CD from files!!

If you have any feedback or problems, visit the ieXbeta thread

This is a screenshot of Virtual PC booting up my CD made in Nero, and it actually works!