One of the biggest changes between Windows Embedded Standard 2009 (XP Embedded) and Windows Embedded Standard 2011 tools is the concept of image building. In Embedded Standard 2009, components were selected in Target Designer and images assembled on developer machine, after which it had to be transferred to target device. In Embedded Standard 2011, images are now built directly on device using Image Based Wizard (IBW) which can be configured “on the fly” using wizard interface, or by using a preconfigured answer file. Each method has its own pros and cons. This article goes over steps for assembling a Embedded Standard 2011 image with desired feature sets, using only tools found on your developer machine.
Full Article: Windows Embedded blog