Well, here's the deal. I'm not sure but I think it's fair to say there have been at least a few different "pirate" versions of the XP Pro w/ built in SP1 CD in circulation since SP1's actual realease. Therefore to better understand what I've done here you all should know that it was done with the "pirate" version of the CD which is connected to the following well-known pirate VLK key:
XK39D-3PDMC-JMMDK-X8T8M-77YVM
Now that we've got that titbit squared away, what I did basically was use that disc to create a brand new XP installation by doing a slipstream of XP Service Pack 2 Build 2162 onto the final ISO. We should note that this particular VLK circulation I'm using had a PID in XXXXX-642-XXXXXXX-23XXX <- that range.
Bottom Line:
The new installation go's through perfectly with keys generated by the 4in1. It not only accepts keys in the 640-500/640-600 range but also keys in the 642-470/642-800 range.
The big SLAP in the face-piece:
NO WINDOWS UPDATE

. Forget windows update with any artificially generated key "Windows could not verify the product key". Yes it sucks elephantitis infected ballzaks I know, but all we can do at this point is hope. Either way you slice this little joint, its a BAD BAD move by M$... Can anyone guess why preventing windows updates would be bad? OF COURSE EVEN A NEW-BORN BABY FREAK could, but heaven forbid that the actual MAKERS of the damn OS can understand it. Nooo noo that would be way too much to ask.