dont know why windows is telling you that, it should work, unless rawrite doesnt work with windows XP, dont know for sure, I dont use windows
basiclinux is like any other "live" linux system, it runs in RAM, it IS NOT A PERMANENT system unless you install it to a hard drive, remove the floppy and turn the power off and its gone *poof* just like that
somehow I still think im missing what your getting at here, your starting to confuse me a bit