Please read this guide from start to finish before doing anything 1) Does your computer support booting from USB? So i got the idea maybe i could install xp onto a usb flashdrive, or external hd. Searched google, come across, one set of directions of acomplishing the process, but it was confuzing, then i.
Installing Windows XP to a USB flash drive can be useful in case your hard drive ever crashes or your computer becomes infected with a virus.
To install Windows XP to a USB flash drive, however, you must prepare the drive for installation. You cannot simply insert the drive into your computer and begin installing to it Windows XP. Instead, you must make a copy of Windows XP and use special software to install that copy your USB drive.
Restart your computer and access your BIOS setup screen. Check your boot settings to make sure 'USB-HDD' is listed as an option. If a USB boot option is not available, you may need to update your BIOS firmware, or you may not be able to boot to USB on your computer at all.
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Check the USB drive manual, or contact the drive's manufacturer, to make sure the drive is bootable. Your drive should also be large enough to hold Windows XP. A USB drive at least 2GB in size is ideal.
Download the HP USB Disk Storage Format Tool. Run the software, then select your USB drive from the list of devices. Select to format to the FAT file system, then click 'Start' to format the drive.
Click 'Start,' 'All Programs,' 'Accessories' and 'Run.' Type '%systemroot%' into the dialogue box. Press 'Enter.' The system root folder will open.
Click 'Tools,' then 'Folder Options.' Click the 'View' tab, and then select the 'Show Hidden Files and Folders' option. Click 'OK.'
Copy 'boot.ini,' 'ntldr' and 'ntdetect' from your system root folder. Paste these files into your USB drive.
Download, install and run PEBuilder to your computer. PEBuilder will allow you to make a bootable copy of Windows XP. Write down the set of numbers following 'PEBuilder v,' located on the top of the window. This is PEBuilder's version number.
Insert your Windows XP Install CD into your CD or DVD drive. Click the '..' next to the 'Source' field, then select your Windows XP install files from your CD.
Leave the 'Custom' field blank and the 'Output' field as 'BartPE.' Click 'Build' to create the Windows XP installation copy.
Click 'Start,' 'All Programs,' 'Accessories' and 'Run.' Type 'cmd.exe' in the box, then press 'Enter.'
Insert your flash drive into your computer. Type 'cd' to go to your PC's root directory, then type 'cd pebuilder#pluginpeinst', replacing '#' with your PEBuilder version.
Type 'peinst', then press 'Enter.' A menu will appear. Type '1' to access the 'Change source path' option. Type 'c:pebuilder#BartPE', again replacing '#' with your PEBuilder version.

Type '2', then press 'Enter.' Type your USB drive letter, followed by ':', then press 'Enter.' Type '5' and press 'Enter' again. Windows XP will be installed to your flash drive.