How to reinstall OS on Netbook

[Cavallino]

I have an NC10 that I wish to sell but I would like to format and reinstall the OS.
I have tried making a USB stick with a bootable copy of my XP cd but when setup loads I get a message saying that XP cannot find a cd-rom and it cannot continue.

Can anyone offer any advice about to get XP Home installed onto a netbook like the NC10?
TIA

 

[Cavallino]

Doesnt you NC10 already have Windows XP installed on a separate Partition?

All NC10's have there own windows XP automaticly saved and hidden on there hard drive.

Well my D: drive is completely empty. So Im guessing no.
The laptop came with an XP Home CD. Its just knowing how to get that onto a USB and get it to boot.