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Long story short, if you want to integrate Vista SP1 into a Vista RTM DVD, the only option for the moment is to reverse integrate it:
1. Install Vista RTM to a secondary partition (not the main boot partition). The primary reason for this is one doesnt want all the boot associated files of that computer related to BCD and boot.ini being part of the final image.
2. Once in the Out of Box Experience (OOBE) after setup, type Ctrl-Shift-F3 to enter Audit mode. In case youre wondering what/where OOBE is, it is the part after setup where the user is setting up his/her username, password etc.
3. The system will then reboot into Audit mode and a Sysprep window will pop up. Do not close the Sysprep window.
4. Run the Vista SP1 installer and let it do its thing.
5. After the SP1 setup is complete, youll find yourself back at the main Vista desktop with the Sysprep window open and SP1 will be installed and ready to go. From the Sysprep selection window, select OOBE, Generalize, and to Shut Down the system.
6. Boot the system into a WinPE disk or another OS install (ie. XP), do NOT boot back into Vista, and run the following imagex command (imagex can be found in WAIK):
imagex /compress maximum /flags Business /capture d: c:\install.wim Windows Vista Business
where d: is the drive Vista is installed on and c:\install.wim is the location to store the new install.wim. Replace Business with whatever edition of Vista you are installing and replace the drive letters with your own.
7. Once the image has been built, replace the old install.wim in the Vista RTM ISO in \Sources\ with the newly created install.wim using a registered version of UltraISO (Version 8.0 or higher). Save the ISO and youre done.
Or for $10 you can just order a replacement disk from MS with SP1 integrated.
http://www.microsoft.com/windowsvista/1033/ordermedia/default.mspx