I know this is a beginner question but, what exactly does a preinstallation
CD do?

It creates an OEM install so you can roll out Windows 2000 installation
across a network etc, but customised for your needs. Use the wizard to guide
you through the process of creating the cab files & the inf file needed for
installation. Used in conjuction with an original Windows 2000 CD only

Its a superb tool to have.

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