Cloning Windows 2000 or XP

What kind of issues can happen if I do the following:
Build an image of a PC with either Win 2000 or XP.

This image csn detect and install several PC models
all from the same manufacturer.

Use that image to build ONE specific model
and then > > > > Use that built model to clone other
PCs, same type, same model, same everything. All in
the same network / domain.

Do I need to worry about updating the SID?

 

Yes microsoft does have a tool for perparing a system to be imaged try searching their site for help.

 

You could also do a off-server installation...OS installation files gets downloaded from the server to all workstations connected to server in the same LAN...but initially follow what Colemanguy suggested.