bootable usb

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Yes but it is an absolute pain in the arse. One reason it is difficult is because XP loads its own USB drivers when installing - therefor the one you want to use to install probably won't work. Two, Microsoft doesn't want people to install their OS on a removable media - as this would make a licensing nightmare.

Google is your friend, just google it and there are plenty of hits on how to accomplish this.
 
Any of the Linux distros are easier to do this with =). Kubuntu would probably be good, as its pretty similar to Windows.
 
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