XP Pro and Cloning

We are preparing for several projects in small networks (40-60 users) that include implementing Windows XP Pro – some upgrades and some new PCs replacing old ones. Our situation with the new machines is that we will be purchasing machines with the OS pre-installed but will want to install additional software and customize settings, create a clone image from one machine and then clone it to the others. I’m looking for advice and tips from anyone who has used any cloning software with Windows XP – i.e., Ghost, PowerQuest, etc. Does it work? What are the pitfalls? How do you handle the license registration issue? Any other experiences you can share that might help us out.