Installing XP from USB HDD?

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Right chaps - need some direction here. I've scratched my head about this for a while and can't seem to come up with an answer.

I have a laptop that has only the hard drive and fdd - there is no cd-rom. What I need to do is to get the machine to think its installing xp from a cd, by placing the setup from the xp cd onto a spare usb hdd that I have. I'm not sure whether I should copy it straight to it or create an image? And then how do I get it to install? I won't need a cd drive once I have got windows on the machine, so thats not a concern.

All help appreciated. Thanks fellahs. :)
 
I would start off by:

Copy the WinXP cd as an iso. Then use a tool like Nero to "burn" the image to a USB key.

Boot from it - Should work !
 
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