Just an update, I spent the last 5 hours playing with this idea. Using VMWare and so on. With no luck. It would either crash, or say missing hal.dll, or some other descriptive error of the usual MS style.
But it seems to me, from all my research, there is only this to do:
1) Format a floppy in XP (NOT create boot disk, just full regular format)
2) Copy ntldr, boot.ini, ntdetect.com to the floppy from your root drive
3) Copy the recovery console files to a new CD project
4) Edit boot.ini to point to the bootsect.dat /cmdcon in the RC folder we made
5) Use the floppy just created to be the boot image of the new CD (to make cd bootable)
The one issue is that, in boot.ini, how do you tell it to look in a CD? Because it's not like the DOS days, you don't use config.sys and autoexec.bat to load CD-ROM drivers, that isn't needed. And yet you DO need to know what the current drive letter is. I don't think you use ARC paths for CD-roms, nor can you use a strait drive letter.
I tried on one or two tries to just put the RC files right on the root of the CD and call bootsect.dat with NO path or drive letter, but didn't work.
So I'm not sure how to use the current CD-ROM drive letter in boot.ini.
This whole thing can be done with WinISO. Like this (WinISO also has 30 day trial so plenty of time to play with it which expirementing).
1) Create the floppy as outlined above.
2) In WinISO, click 'Bootable CD -> Make Boot file from floppy...' Then give the file a name and save it. This will create a boot file from your floppy to be used in the next step.
3) Click 'Bootable CD -> Load boot information from file'. Then pick the file just made. Now the project will change from non bootcd to bootable.
4) Next add the R.C. folder to the project, located however you did it in boot.ini
5) Give the CD a name and save the ISO. Now the ISO can be used in an EMU, or burned to CD.
So if anybody gets a chance to play with this some more, I'm right on the cusp of knowing whether this can work or not. There may have been issues using the EMU, so I have to try it some more using a real CD and system.
The reason this "should" work, is that I read on MS own website, that IF R.C. has been installed to your hard drive already, but somehow your own boot sector got messed up, you can still boot to R.C. by creating the floppy as I outlined, and then putting the path in the boot.ini. Simple as that. So why not take that same example and instead of make the path to the C: drive, make it to the CD-ROM? But I can't find out how for that part.
And yes, I tried just manually USING a direct drive letter, but it's odd because in the early boot process, I don't know if the CD-ROM has been assigned a drive letter yet! I got one particular error about the path not being found, even though Windows showed the drive as drive D:, I don't think I could use that when in boot.ini.
Getting close!