This link will tells you everything you need nd how to create a bootable XP on your USB http://articles.techrepublic.com.com/5100-10878_11-6160062.html
Hope that helps...........
Rreadow To Boot From A USB Flash
For starters this is still a new science and many people have had good luck with at least one of these methods and others have not. Note that flash drives are often also called thumb drives, keychain drives, pendrives, etc.
A FEW THINGS YOU NEED TO CONSIDER IN ADVANCE.
1. The PC has to support booting from a USB flash drive. There may be anywhere from 1-3 items to change in the BIOS to make this possible assuming your BIOS supports it. Some bios's may refer to your flash drive as a USB floppy or USB zip.
2. The USB flash drive must support booting from it in general.
3. The flash drive must contain the boot/system files.
4. The flash drive must have bootsector area. This is done with special utilities.
5. References to "A:" drive lines in the autoexec.bat and/or config.sys files you copy to the drive after you make it bootable may result in errors.
6. You "may" have to format your floppy disk first in WinXP before you create a bootdisk as XP may "not" like working later on with a disk formatted otherwise.
7. Included below is a bootable ISO of DOS 7.1 which may be used with some of these methods if you do not have a 1.44 drive.

METHODS
Method 1 - Make your flash drive bootable using Bart's mkbt util:
http://www.nu2.nu/mkbt/ | Alt: mkbt20.zip
Put a bootable floppy disk in your A: drive or create one using Windows.
Download mkbt20.zip and unpack to to new temp folder you create.
Go to the temp folder.
Extract the bootsector from the bootable floppy disk. eg Open a DOS Window and go to the directory where you extracted MKBT. Type:
mkbt -c a: bootsect.bin
The boot sectors from the bootable floppy disk have just been saved to a file in the temp folder you created.
Format the flash drive in FAT or FAT16.
Copy the bootsector to the flash drive. Open a DOS Window and go to the folder where you extracted MKBT. Type:
mkbt -x bootsect.bin Z:
"Z" represents the flash drive drive Letter. So if your flash drive has another drive letter, then change the "Z" accordingly.
Now you can [grin] "should" be able to copy the utils you need to the pen drive.

Method 2 - Try these 2 HP/Compaq USB Flash Drive Utilities. They work with many other brands of flash drives as well.
HP USB Disk Storage Format Tool Version 2.0.6
HP Drive Key Boot Utility Version 7.41
Download

Method 3 - Third Party Links
http://ucsu.colorado.edu/~shaher/Bootable_USB.html
Recall I did say it's a new science.
http://www.microsoft.com/whdc/device/Bootable USB - zivider.gif-boot.mspx

Method 4 - A Bootdisk.Com Visitor Suggested
Here is my another method for creating dos bootable USB sticks using windows format.
1. From Win98 DOS-Prompt type "SYS {USBDriveLetter}:" or "FORMAT {USBDriveLetter} /U /S". If from WinXp then from start->run command.com execute format.exe copied from win95 or win98.
OR
2. Simply by enabling copy system files in windows explorer format window. By default it is disabled for non-floppy drives. To enable it use windows enabler program from http://Bootable USB - zivider.gifre.com/falcon/speedload/Enabler.htm an whoBootable USB - zivider.gifs.


Method 5 - Another Bootdisk.Com Fan Suggested - Thanks Keith
First if you don't have a physical floppy drive (and don't want one) you can use the [free] "virtual floppy driver" from here:
http://chitchat.at.infoseek.co.jp/vmware/vfd.html
With that you get an A: drive and can manipulate a floppy image as if you were using real floppy. You can then use that image to make a bootable CD. It's not that user friendly but once you get how it works it does work perfectly.
Even cooler you can use a "raw write" utility like dd for windows to write the floppy image directly to your USB thumb drive. Even without that famous HP utility to do the magic this will make your USB thumb drive bootable. The 'dd' ported to Windows is located here:
http://www.chrysocome.net/dd
Another trick you can use with that dd utility involves MS VritualPC (which is free). You can create a virtual machine/virtual hard drive, set it up the way you want then use dd to "raw write" the virtual hard drive image to the thumb drive; this will make the thumb drive identical to the image, including bootable (again, no HP utilities required).
Of course, your thumb drive will effectively have the capacity the size if the image in question (your 1GB flash drive will effectively be 1.44 Megs).
First follow the instruction given this links:
http://www.bootdisk.com/pendrive.htm
and to create a ISO file please click on this link
http://www.runtime.org/peb.htm
Hope this helps you ..
Good luck...
How to make the flash drive bootable. check this link...
http://www.bootdisk.com/pendrive.htm
Hi,
I need a little more information from your end , to help you better on this, first which windows operating system are you using and second, the backup that you are trying to go to is it already on the fash drive.
Additionaly let me know what error message are you getting when , you start your computer.
Thanks
proton
Hey Albert,
Thanks for the additional information , i was doing some research for you and there are many vendor in the market that have the product caller Drive image 7, could you give me the manufacturer of the product , so that i can give you the exact screen to go to , to create a bootable USB drive.
Additional Resource : Windows Xp pro also provides disk backup and is inbuilt in xp and allows you to copy data to exteranl source on a scheduled date and time. The following link gives you more info on the same.
http://www.microsoft.com/windowsxp/using...
Thanks
proton
Hi,
Thanks for updating me on the software version you have. If the the original cd is still working, You can download the following software from the site given below
http://www.softpedia.com/get/System/Back...
The above s/w does the following things
Create image files of any disks and back (USB Flash Drives, Floppy Drives, Hard Drives, etc).All Image is a software that create disk duplicates.
Save the image file compressed, uncompressed or as a highly customizable self-extracting exe using a wizard-like interface.
Create bootable USB Flash Drives to use instead of bootable floppy disks. Wipe disks 100% clean using secure methods. Get detailed disk drive information.
Create exact duplicates of any disks. Logically recreate bad sectors when writing floppy disks, allowing for an exact duplicate of your source disk to be created. Supports all known file systems. Full support for drag-n-drop.
Thanks
Proton
DO let me know if more help is needed . Till then i'm also trying to find a way to burn the image using power quest software.
One more thing to ask , by any chance , do you have the user manual lying some place for this one ,
cause its mentioned in one of the articles that drive quest is capable of copying the image on to a flash drive.
http://www.computervideo.net/sep03-4.htm...
Thanks
proton
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Dear Proton,
right now my PC is fine but I do get the blue screen of death once in a while and when I do I get (look for) my Drive Image v7 CD (which is a bootable CD) to boot into Drive Image's restore program then restore from my previous backup images of my hard drive. Last time my CD was full of molds that I thought I could not use it anymore (luckily after cleaning, it still worked). I want to have a bootable USB as another option rather than relying on my CD. As for my OS, I am using Win XP Prof SP3. My PC is configured as having a 60 Gb boot hard drive (drive C where I install all my programs) and I have another 120 Gb data hard drive (drive D) where I save all my files - docs, photos, etc and including the backup images of my boot drive.
Thanks, Albert
Dear ajkill,
Sorry for the late reply, I have been out of town on a workshop seminar for a couple of weeeks. I tried your suggestion and was able to make my 4Gb Flash drive to boot BartPE. But what I really wanted was to make my flash drive boot my Drive Image CD (ISO) so that I can use it in case I need to restore my PC using the Drive Image backup images.
Thanks for your help.
Albert
Dear ajkill,
Sorry for the late reply, I was out of town for a couple weeks on a workshop seminar. I treid your suggestion and was able to boot my 4Gb flash drive using BartPE. But what I really wanted was to make my flash drive boot my Drive Image CD (ISO) in case I need it to restore my PC using the Drive Image backup images.
Thanks for your help.
Albert
Dear Proton,
Drive Image v7 is an old (2003) program from Power Quest used to make hard drive images as backup of the PC so that the PC can be restored to the original state (as of the backup) much like Norton's Ghost program. Unfortunately, the company PowerQuest (makers of Drive Image and Partition Magic) was acquired by Symantec 2-3 years ago, presumably to incorporate its technology into its own Ghost program. Eversince the acquisition PowerQuest's product have disappeared (not even re-marketed by Symantec).
I would appreciate it if anyone can show me how to make my flash drive bootable and be able to boot the Drive Image CD (ISO).
Thanks.
Albert
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