From what I can see the instructions tell you fow to create a bootable USB and how to get the XP files onto the USB drive. If it doesn't work then I've no idea.
The XP files are on it, and boot, hence why it does the text based part, it's just the GUI part it doesn't.
More links. Similar stuff. How to install Windows XP on Eee PC and netbooks, made easy Installing Windows XP on a Netbook Via USB Make sure you're following the steps carefully. It seems to work for other people.
Believe me, I'm following the steps, may just be the ISO I'm using. I attempted to repair it DOS >.<. Same thing.
I've never had that error when install XP. Looks like you might have a faulty image. I'd try another ISO and use those files.
