Having Windows Recovery Console on a CD is trivial. Just use the Windows Installation CD. There are a few problems with this. This should be one of the images in the GUI CD. So, if we copy the entire Windows Install CD over, that uses up about half the CD. We want to keep the space use on the CD to the minumum, since there are going to be other OSes too, and lots of utilities. Besides we dont need the entire CD, to use the Recovery Console. All we need is to identify those files on the Windows Install CD, that are needed to boot into Windows, and to run the recovery console. Amazingly enough, all these files use up less than 20MB. We also need to "copy" the Windows XP boot sector to a file on the CD, and to get that as one of the boot options.
To copy the windows XP boot sector, you can either extract the XP boot sector off the CD using a perl script (it is not located in a predefined place, but the address of the boot sector is located in the predefined place - Dont quote me on this). Alternately, you can download it the Windows XP addon from Bart's Page. After you unzip the file, you will see a 2K binary file called w2ksect.dat. This is the boot sector on the windows CD.
To add that as one of boot images: Copy this file in isolinux/w2ksect.bin on the CD and add a line in the isolinux.cfg like
label winxp
kernel w2ksect.bin
This will instruct ISOlinux to boot off w2ksect.bin if you choose the winxp image.
We are still far from done. This boot loader, requires a whole lot of other files, to successfully boot. Now go any windows XP machine, insert the install CD and execute CDROM:\I386\winnt32 /cmdcons /dudisable. This will install a local copy of the recovery console on your hard disk. This creates a hidden directory (C:\CMDCONS) which contains the files which are needed to boot into Windows.
So, copy all files in the windows XP install CD outside the I386 directory (you may omit the docs subdirectory if you want), and all the files in I386 directory whose name is there in C:\CMDCONS directory. Dont copy the files in C:\CMDCONS directory, they may have been localized to suit your specific system.
Now you have enough files in your CD, to boot into windows and choose the recovery console. If you boot into windows using this CD, it will still give you an option to "install windows". However if you try that, it will fail, since we have not copied the files needed for the installation to proceed.
Finally, when you create the iso image, turn off File Versions. Even though this violates the ISO9660 format, it is necessary to boot into Windows. Otherwise you will get a "Cannot find NTLDR" error message when you try to boot into windows.