I did not find it necessary to have a driver repository when using WDS and WIM's. Think of wim images as ghost images, they retain all drivers. Also never had to place my sysprep anywhere other than the root of the WIM image.
My understanding of this is as follows now.
1) Set up WDS for capture and deploy (Done)
2) Make an ideal XP image with driver repository on C: and sysprep it with minisetup enabled and Re-Seal.
3) Boot from PXE and capture the image to the server.
4) Specify a WDSClientUnattend.xml for the server which will pick the deply image and select the .WIM in the correct image group after partitioning the drive. The partitioning is working and the right image .wim is being pulled down so I'm pretty sure I'm right to here.
5) Place an sysprep.inf in the correct folder to automate the installation of the image. It gets placed on the boot drive once the .wim is extracted ready to control mini setup.
It is placed in \\wdsserver\REMINST\Images\Imagegroup\imagefilenam e\$OEM$\$1\sysprep
6) Boot PC from PXE and it should arrive at a ctrl+alt+del to log on screen after 20mins ish connected to the domain and ready to go.
7)tear out hair because it doesn't.