What Win2k means is stick the cd in the drive and set your boot sequence in your bios to your cd drive first.
Assuming its an original ((or) bootable) 2k CD it will boot up and you just follow the instructions.
If you have only the cab files (i386? (not sure about that, I know thats what it is for xp anyway) and the cd aint bootable then you got to either find a bootable cd that gets you into the command prompt or fix da floppy.
If the floppy light is on constantly then the floppy cable is on upside down somewhere... change it.
If not, is it possible just to make a boot disk from another PC?
Windows XP Pro 2002 (SP2)
Intel Northwood 2.4GHz
Compaq Evo D510 SFF
768MB DDR PC2100
NVIDIA TNT2 32MB
Intel 82801 (AC\'97)
C: 40GB (FAT32)