With the Microsoft Deployment Toolkit 2010, an administrator can have a fresh install of Windows 7, with all previous XP files and settings, completed in as few as 30 minutes.
Complete How TO Guide with Screenshots: http://blogcastrepository.com/blogs/mayki/archive/2009/03/16/microsoft-deployment-toolkit-2010-beta-1-how-to-using-mdt-to-prepare-install-and-capture-customized-windows-7-images.aspx
Presently to download the tool you have to join the Windows 7 Beta, to do so:
Join the Beta
Additional infrastructure deployment tools are available as beta releases on the Connect Web site. They are open beta downloads. See below for instructions on how to access the Connect Web site.
To join the Microsoft Deployment Toolkit 2010 Beta, follow these steps:
1. Visit the Microsoft Deployment Toolkit Beta at http://connect.microsoft.com.
2. Sign in using a valid Windows Live ID to continue to the Invitations page.
3. Scroll down to Microsoft Deployment Connection.
If you have not previously registered with Microsoft Connect, you might be required to register before continuing with the invitation process.
If the link in step 1 does not work, copy the link and paste it into the Web browser address bar.
After you have completed all that, you can download Microsoft Deployment Toolkit 2010 Beta1 from Connect website . http://connect.microsoft.com/
Microsoft Deployment Toolkit Blog