Client setup of W2k3 server AD setup

Hi All

When I setup PCs for use in a basic Windows 2003 server R2 setup using
AD/GPO, I have this thing in my head that if my client machines are pre-set
with as much settings as I want already then this is faster than doing it
all through GPO.

Just to put to bed a few myths could you please let me know if and where the
problems are in the below method:

1) I get a virgin XP Pro SP3 (don't use Vista or 7) machine, say a Dell,
with their base image on it.

2) I install the software that needs to go on it.

3) I remove the flaff software that they put on it, eg McAfee, Office 2007
trial, etc.

4) I create a user local user account, which gives me 1 x admin account and
1 x user account.

5) I log on as the user account.

6) I set a plain colour background, XP classic theme, desktops icons in the
place that I want them, set auto-arrange on, set energy saver/screen saver
settings, taskbar settings, control panel settings and so on.

7) I restart and log on as admin.

8) I 'show' hidden files and via C:/Docs & Settings I go into the Default
User folder.

9) I delete anything in useless out of the start menu, Favs, My Docs and
Desktop.

10) I copy the NTUser.Dat file from the 'user' folder and overwrite the
default user's ntuser.dat file.

11) I hide the hidden files setting.

Note: the machine is still in Workgroup mode.

12) I image this master PC onto other machines.

13) As I start the machines up I change the computer name to make it unique
and then add the machines to the domain of the server. This is all done
through the My Computer > Properties window.

I also do the above My Computer tasks on the master PC if this is also used
as a client PC in the school.

Issues?

Better method?

Does this perform faster than having to be pulled down from GPO each time a
user logs in?

PLEASE NOTE: that we only redirect the My Docs to a User folder on the
server. There is no roaming profile or redirected desktop, etc.