You have basically reverted an M2 install to an M1 install without the benefit of cab compression.
Good thinking and my respect. 
Let's consider some options to improve on your method (if possible).
notes:
Since you are moving the drivers to the $OEM$ folder they are copied during textmode (16bit mode).
It is preferable to copy them from presetup because in GUI mode we are useing 32 bit drivers.
Ideally we would copy the original packs which would mean a smaller transferred size and at a higher speed.
It may be a textmode copy is unavoidable. I am not convinced that is true just yet... but let's assume it is.
If they must be copied during text mode may i suggest you do it this way...
move the OEM folder to the \\server\autoinst\xp\i386\$oem$\$1\ folder.
creating a \\server\autoinst\xp\i386\$oem$\$1\OEM\ folder (replaces step 4)
This will reduce the size of the text mode copy from 1.5 gig to 300 meg.
This will be a huge reduction in transfer time and network load.
This technique will also eliminate steps 5, 6, 7, 8, and 9. (what happened to step 10?)
use this modified version of presetup.cmd (replaces steps 11 and 12)
REM +==========================================================================+
REM | |
REM | This presetup.cmd file was dynamically generated by the DriverPacks |
REM | BASE, to work with the DriverPacks without any further editing. |
REM | However, if you would like to add some custom functionality, you can |
REM | edit this file without any problems. Just take into record that this |
REM | file will be erased if you run the DriverPacks BASE on these Windows |
REM | installation files again! |
REM | |
REM | With special thanks to: |
REM | -Pyron, a06lp and iLE for their help with this method; |
REM | -schalti for the optional 'Keep the Drivers' system and Pyron (again) |
REM | for turning it into an executable. |
REM | -SuperTibaldoKart for creating un7zip.exe |
REM | |
REM +==========================================================================+
REM +==========================================================================+
REM | Finding CD/DVD driveletter is modified to point to system root. |
REM |--------------------------------------------------------------------------|
SET CDDRIVE=%SystemDrive%
REM +==========================================================================+
REM | Decompressing the DriverPacks to the harddisk - using un7zip.exe. |
REM |--------------------------------------------------------------------------|
%CDDRIVE%\OEM\bin\un7zip.exe %CDDRIVE%\OEM\DP*.7z %SystemDrive%\
REM +==========================================================================+
REM | Copying/decompressing the files to finish the installation. |
REM |--------------------------------------------------------------------------|
%CDDRIVE%\OEM\bin\un7zip.exe %CDDRIVE%\OEM\bin\*.7z %SystemDrive%\
COPY /Y %CDDRIVE%\OEM\bin\DPsFnshr.ini %SystemDrive%\
IF EXIST %CDDRIVE%\OEM\*.ins COPY /Y %CDDRIVE%\OEM\*.ins %SystemDrive%\
REM +==========================================================================+
REM | Scanning for driverdirectories. |
REM |--------------------------------------------------------------------------|
%CDDRIVE%\OEM\bin\DevPath.exe %SystemDrive%\D
REM +==========================================================================+
REM | Deleting the source 7zip files used for the Network install. |
REM |--------------------------------------------------------------------------|
IF EXIST %CDDRIVE%\OEM\ RD /S /Q %CDDRIVE%\OEM
REM +==========================================================================+
REM | Disable Driver Signing Policy and keep it disabled. |
REM |--------------------------------------------------------------------------|
START %SystemDrive%\DSPdsblr.exe
EXIT
if it is possible to copy them from presetup.cmd that would be even better.
Then it would only be necessary to change the below lines in presetup.cmd
This would eliminate copying the OEM folder in text mode to the local drive.
the copy and extraction would be a single step process that takes advantage of the improved processing and IO performance of the PE platform. It is alsoexact same technique DriverPacks uses and supports with standard M2 CD / DVD install (that we support) 
IE
move the OEM folder to the \\server\autoinst\xp\i386\$oem$\ folder.
creating a \\server\autoinst\xp\i386\$oem$\OEM folder replacing steps 4, 5, 6, 7, 8, 9 and [potentially] 10 )
REM +==========================================================================+
REM | Finding CD/DVD driveletter function now sets Network source location |
REM |--------------------------------------------------------------------------|
net use z: \\server\autoinst [pass /user:admin /Y]
SET CDDRIVE=Z:\xp\i386\$oem$
If the servername or share name are not 8.3 then it can be in quotes and the [pass /user:admin /Y] is optional
IE net use z: "\\MyServerHasLongName\AutoInstallationFolder"
or net use z: "\\MyServerHasLongName\AutoInstallationFolder" Pa55w0rd /user:Administrator /Y
Thanks so much for sharing... if you dare to try my ideas can you give us a further update!!!
your one of the people who contribute, making DriverPacks a great place to be. thanks!
PS you gave no details on winnt32...
