i read an article somewhere which gave instructions on how to install windows from a USB drive... but you need the original CD for the files - i think.
well you would need some way (including a legit cd) to get the files from the cd to another medium i.e. the laptop hdd/flash drive etc. i've never tried with XP but installing 98SE back in the day could easily be done by copying all the files from the cd onto a hdd and starting the setup from DOS
With windowsXP you need either are hard drive with it already installed from which you can make a clone from or you can do it from a flash drive if you have one larger than 2gig.
I know how to do it but cannot discuss it on this forum cause of the TOS.