A system and method of creating and employing an operating system (OS) image having selected functionality. A user, such as an original equipment manufacturer (OEM) of personal computers (PCs) or an information technology professional, selects a set of OS components from a plurality of OS components available in an installation OS image. The selected set of OS components is installed as the OS image on a computer readable medium such as a CD-ROM. The OS image includes a script for interacting with the OS image to perform functions desired by a user, such as booting a destination computer and installing a reference OS image or recovering the destination computer from a failed installation of the reference OS image.