Creating a bootable USB for XP manually is a quite complex process so here for simplicity I'm gonna use a small utility.
Having a bootable USB is a good alternative if your CD/DVD drive is not working.
With the bootable USB you can either Install, Format the drive, make partitions or play with your bios.
Just follow the below simple steps:

  • Download the latest version of utility Win To Flash from here
  • Run its exe file you don't need to install it.
  • Complete the Quick survey for First time run.
  • Then You'll see the software window there select tab > Advanced mode
  • In the Task box select Transfer Windows XP/2003 setup to USB drive >  click create.
  • In the new window select the window source path like the path of your CD/DVD drive with windows disk or its ISO image and the path of your USB drive.
  • Here you can configure other setting too like Format, Disk Check, Boot Loader etc. Then Click Run.
  • After making one or two confirmations it'll start dumping the Windows files into USB drive.
  • After completion the USB drive is ready to boot.

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