Boot from ur USB stick, copy winxp and boot from it. includes video tutorial inside on how to do it. works on my notebook with cdrom device.
As the world is being taken over by Netbooks. This may come in useful. Netbooks are great but they have no CD/DVD drive with this you can Install a full size version of any XP onto a USB drive. You can then install Windows XP to your Netbook over and over. This can be used on any PC though not just machines without CD/DVD drives Has instructions and also a 5min video tutorial. Your USB drive must be at least 1GB.