Download XPS Essential Pack from Microsoft http://www.microsoft.com/downloads/details.aspx?FamilyId=B8DCFFDD-E3A5-44CC-8021-7649FD37FFEE&displaylang=en
-> XPSEP XP and Server 2003 32 bit.msi
Rename it to XPSEP-XP-and-Server-2003-32-bit.msi
Create Transform as shown in
http://www.withinwindows.com/2008/09/15/microsoft-i-fixed-the-xps-essentials-pack-for-you-it-took-10-minutes
(You have to drop row WICUpdateInstallAction in table InstallExecuteSequence to provide errors by deploying XPS offline).