In order for the USB drive to be able to start before entering the operating system, you must create a boot sector on it. This can be done through the command line or using additional utilities.
Instructions
Step 1
Download the WinSetupFromUSB program and install it on your computer. It includes a couple of important features. Select the USB drive where the Windows XP installation files will be written. Please note that its size must not be less than 1 GB.
Step 2
Connect the selected drive to the USB port of your computer or laptop. Please copy important information from it, because the drive will be formatted during the creation of the boot sector. Run the WinSetupFromUSB utility. In the first field, specify the USB flash drive or external hard drive to which you want to write the Windows installation files.
Step 3
Now start creating the boot sector. Click the BootIce button. In the menu that appears, check the selected drive and click the Perform Format button. In the new window, highlight the Single Partition (USB-HDD Mode) option and click the Next Step button. In the File System field, select the file system format. Better to use FAT32 or NTFS. Press the OK buttons several times to confirm the creation of the boot sector.
Step 4
Close the BootIce utility and return to WinSetupFromUSB. Find Windows 2000 / XP / 2003 and select it with a check mark. Copy the entire contents of the Windows XP installation disc or its image to a separate folder. Specify this directory in the highlighted item.
Step 5
Check if the settings are correct and press the GO button. Wait until the required files are copied to your USB drive. Safely remove it. Connect it to another computer or laptop and turn on this device.
Step 6
Press the F8 key and select USB-HDD. Install the Windows XP operating system as usual. Remember that the motherboard must support the ability to boot the system from a USB stick.