Iterative or feature-driven development?

I started a thread on Extreme Programming mailing list:

http://groups.yahoo.com/group/extremeprogramming/message/113227

I am still trying to control chaos on the projects I am working on. I felt that iterative development is too restricting and not agile enough. Business expects the time from inception to release to be as short as one week in some of the cases. There is no way to do that with two-week iteration.

My priorities will be:

1. Automated QA tests.
   
2. Automated (as much as possible) deployment
3. Smart branching strategy
4. Code&Design reviews.