nLite ISO?

I created a cd using nlite, updated it to SP2 but couldn't figure out how to include hotfix, I see them on my PC (add/remove programs) but I cannot find the location. It seems the setup.exe is under the winlite folder, do I have to open the folder and burn the files without the a cd and leave out winlite? My XP Pro cd as soon as I inserted starts running, I am afraid it won't run automatically.