you download and install nlite. you put the xp cd in the drive where it ask for the location of the xp cd. it will rip the contents to the hdd. if will give you a bunch of options. only pick create a bootable iso option.
now burn that iso to cd with nero, poweriso or alcohol. it will boot now. I have a super windows dvd, which have every version of windows on it, but it never seem to work right straight from the dvd. so I burn each windows xp folder to it's own disc. if I do it without importing the folder into nlite. they won't boot
the highlighted folder are the different version of windows that i have broke down into single copies