Lurkswithin gives good advice...but we trolls never just take good advice, we do stupid stuff like keeping on searching... "XP will not install to a USB Flash drive without some major registry editing"
Check out the key word phrase "
XP will not install to a USB Flash drive" in google there are quite a list of suggestions...
One of which is common...
SolutionBase: Boot Windows XP from a USB flash drive >>"You can't boot Windows XP from a floppy disk the way you used to be able to with DOS.
One handy way to easily boot XP is by using a USB flash drive. Here's how to make it work." ..."Another utility that you are going to need is Bart's Preinstalled Environment Bootable Live Windows CD / DVD, or BartPE for short. You can download this utility for free from the BartPE Web site." ...found at
Bart's Preinstalled Environment (BartPE) bootable live windows CD/DVD
If one does not work try another reference...good luck