I have 25 new Windows XP computers to install for four departments that are replacing there current PCs. Currently...
17 are running Windows XP Pro and the rest are running Windows 98SE. How can I move the favorites and desktop settings for these users to the new PCs?
In addition, after moving each user to the new PC, how can I determine which default services that run in the background can be turned off in order to give the users more power by freeing up system memory?
Microsoft has its own utility to do this, called the Files and Settings Transfer Wizard, which can migrate files and settings via a removable disk or network share. See Microsoft Knowledge Base article 293118 for a quick rundown on how to use it; it happens to be very straightforward.
As for shutting off unneeded services, this is a slightly controversial topic (in terms of which services can be shut off safely and which are essential), but a very detailed overview of which Windows XP services would be good candidates to turn off can be found here: http://www.theeldergeek.com/services_guide.htm.
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