Wow, there is a lot of misinformation out there. Here is how I did slipstreamed Service Pack 1 into Windows 7 (and this should be the same process for Server 2008 R2).
These instructions require you to have WAIK – Windows Automated Install Kit, which you can get HERE.
PREWORK – Prepeing the SP1 To Be Used In OffLine Mode:
Note that some of this pre-work can apparently be done using THIS script file, but I have not tested it.
1.)Download Windows 7 Service Pack 1 and note that you do not need the SYMBOLS. Just download the 32 or 64 bit version of the SP1
2.)Extract the output by adding the -X switch (i.e. windows6.1-KB976932-X64.exe -x )
3.)Select the you want to put it into when prompted
4.)Extract the contents of windows6.1-KB976932-X64.cab (using WinZip, WinRAR or whatever CAB extractor you like) into the SAME folder (i.e. NOT a subfolder). This will take some time
5.)Extract the contents of NestedMPPContent.cab into the SAME folder
6.)Use Notepad (or similar program) to open update.ses and change theoperationMode=”OfflineInstall” task to Installed .
Note that I used NOTEPAD++ to edit mine because after I edited it with Notepad, the caridge returns did not look right, even if I tried to save it in UTF-8 or other formats.
7.)Use Notepad (or similar program) to open Windows7SP1-KB976933~31bf3856ad364e35~amd64~~220.127.116.1114.mum and change theoperationMode=”OfflineInstall” task to Installed .
8.)Extract all 7 language CAB files into the SAME folder (KB976933-LangsCab0.cab through KB976933-LangsCab6.cab) and yes, OVERWRITE existing files when prompted. This will take a.
INJECT SP1 INTO YOUR .WIM
1.)Extract the .WIM file from your WDS (Windows Deployment Services) or other deployment tool
I will call my export CUSTOMBOOT.WIM, but you could call it anything you wanted.
2.)Mount that .WIM on a machine with WAIK installed by:
a.)create a folder named C:\TEMP\MOUNT\
b.)type dism.exe /mount-wim /wimfile:C:\temp\customboot.wim /index:1 /mountdir:C:\temp\mount
3.)Copy your preped SP1 folder to C:\TEMP\SP1\
4.)Type dism /Image:C:\temp\mount /Add-Package /PackagePath:C:\temp\sp1
5.)Type dism /Unmount-Wim /MountDir:C:\temp\mount /Commit
6.)Import the new .WIM into your WDS or other deployment tool and have a nice day