Installing Windows XP on Netbooks and Other Computers Without DVD Drive
1. Preparing USB thumbdrive
Get USB thumbdrive. Fast one (USB 2.0 device) is recommended. Minimum capacity is 1Gb.
Download and install FlashBoot.
Step-by-step guide follows:
2. Setting up BIOS to boot from USB thumbdrive
3. Running Windows XP installation from USB thumbdrive
This should be obvious. First, you need to create partitions with DOS-style FDISK, then installation continues usual way via DOS-based Setup, Text-Mode Setup and finally GUI Setup. If you have any questions, consult this gallery.
4. What if I'm getting BSoD (Blue Screen of Death) during installation?
This is probably because you have AHCI enabled in your BIOS setup. Read this article to get more information about working around BSoD issues during Windows XP installation.