So here is the tip for Installing Windows XP from a Pen drive.
1.You will need a special tool to copy the Installation files and making the
USB Pen Drive bootable.You need to download the zip file which is below.
Download
2.Unpack to any folder. The path to your folder must be simple.
3.Insert your Pen Drive.
4.Run USB_MultiBoot_10.cmd
~Format utility will apear. Choose NTFS for >=4Gb usb flash and FAT16 for other,
Start format, Close after finishing.
5.If you are doing this from a Vista machine, you may need to run PeToUSB.exe
as adminstrator
in order for this program to recognize the jump drive. (Right click PeToUSB.exe >
Properties > Compatibility > Run this program as an administrator checked.)
6.Set options 1 and 2. Set option 0 only if you want to use USB HDD instead of a USB Pen Drive.
7.Choose 3 after setting all other options. It will create the image and write it to
the USB Pen Drive as well as making the USB Pen drive bootable.
8.Answer Yes to all questions that come up.
9.When it finishes copying, remove your usb stick and insert it in the PC to install XP.
10.When you turn on the PC, hold down Esc to choose the boot device and select the USB Pen Drive.
You'll need to do this at each reboot until XP is fully installed and you've logged in.
11.Choose Text installation at first time and GUI INSTALLATION aftere reboot twice
( Choose step 1 to start installing, after reboot choose step two, after continued install
press step 2 AGAIN to log into XP - As soon as you arrive at the Windows XP Desktop you can
safely remove the USB Pen Drive.)