The approved method is to use sysprep as follows:-
You will first need to install the deployment tools from the Windows CD onto the machine. Insert the windows CD, navigate to the \Support\Tools folder and double click on the Deploy.cab file. Select all of the files in Deploy,cab, right click, extract, and extract all the files to a folder called C:\sysprep. (the folder name is important)
Run the SetupMgr program from C:\Sysprep and select a new answer file, for a sysprep install for Windows XP. Select, Yes fully automate. and go through and supply all the relevant information. If you select a fully automated installation as suggested you will not be able to leave some entries like "computer name" and "productid" blank but if you want to enter them at install time, don't worry too much now, just type in something and you can remove it in the next step.
After completing the answer file save it as C:\Sysprep\sysprep.inf. and close the dialog box. If you want to edit it the sysprep file, you can right click on sysprep.inf and select Open With Notepad. You can then change bits. For example if you want to be prompted for the computer name at install time change the line that reads
ComputerName=xxxxx
ProductID=xxxx-xxxx-xxxx-xxxx-xxxx-xxxx
To
ComputerName=
ProductID=
As the value is now blank, you will be prompted for the computer name at install
One you are happy, it might be a good idea to copy the C:\Sysprep folder to a removable device such as a USB memory stick as the whole of the C:\sysprep folder will be permanently deleted later on in the process.
Now we need to run Sysprep. Douple click on Sysprep.exe. Make sure that the "Mini-setup" option IS selected and "NoSidGen" is NOT selected and the SHUTDOWN option is selected before pressing RESEAL.
Windows will then strip the SIDs and other identifies out of Windows and prepare it for imaging. Windows will then shutdown.
Once Windows is shutdown you need to start the PC booting from either a floppy disk or CD that contains your third party imaging program. This can be Symantec Ghost, Acronis, Drive Image similar. You then need to copy the image file to a removable disk, CDs/DVDs network drive or whatever.
You then need to start the new PC, boot that from the floppy disk or CD that contains your third party imaging program and copy the image that you mage of the first PC to the new PC.
When the image has been copied you can reboot the new PC. Windows will start and go through the mini-setup and configure itself using the sysprep.inf file that you created. If you left any of the required options, like computer name blank, you will be prompted to type them in. Otherwise setup will be automatic. As its only re-configuring, not reinstalling the mini-setup takes about 5mins, at then end of which you will have a new computer which is identical to the first one but with a different name and different SIDs. All of the software and configurations will be preserved.
Ok thats the way to do it next time (maybe) another alternative is to use the FREE microsoft "NewSid" utility to change the SID -