how to create a bootable pendrive. it is possible with winXP or using another 3rd party tools. please send me reply

You can use a flash drive to set up a boot up program that will act as a boot disc for XP. You cannot set up a pendrive or flash drive to contain the xp operating sytem that will boot on demand because of all the built in boot configuration and driver/ hardware checks in XP.

There are executable programs that can be installed on a flashdrive. These are normally refered to as U3 programs. Google for them!

You can boot other OS's and utilities. Here's one example.

Boot and run Linux from a USB flash memory stick | USB Pen Drive Linux