Not really an option..
You can create a patched CD and install the updated version from it, however, because the CD Key is for the original release, as soon as you apply sp1 to an install cd, the key becomes invalid as it sees the disk as an XP w/SP1 cd, not as an XP Original Release.
The easiest thing to do, is download and burn updates to a cd. Last time I checked you don't need SP1 to install SP2, but be safe and download both in case it wants SP1 before SP2 will load.
After SP2 is loaded, connect to the internet (don't have a network connected while installing or while updating) after loaded, go get the rest of the updates that aren't included in SP2 (yeah, 90+ individual tweaks, how many does MS need before they put out SP3? who knows!)