Well not exactly because mine isn't a Dell. Mine was a custom build. The problem is with Windows Updates for too many people I know.
The updates modify regsitry and unless you have the executables, I don't think you can copy anything over at all.
All of your "Updates" to Windows XP, Windows Media Player, .NET are registered in your registry & can check under:
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Updates\Wind owsXP\SP3\
The Hotfixes will be under:
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Hotfix\
That is where they are enumerated. Obviously, Control Panel > Add/Remove Programs (show updates) and Belarc can also do the same job
I'm not entirely sure, but I don't think there is a way for you to actually copy/move over your existing updates onto another HDD via a CD/DVD. Mainly because they are integrated inside, modify the registry etc but I'm not sure at all.
The only thing I reckon you can do is download the updates executables and burn them onto a CD/DVD using this program you say, which obviously allows them to run as a "Combination installation" rather than a stand-alone.