Is there a way to burn a CD boot disc instead of the small floppy? SHOULD BE but the options seem to be lagging way behind the technology. Sigh.
http://www.pcurtis.com/w95.htm
http://www.geocities.com/Paris/LeftBank/3992/preparation.html
You need to set the CD-ROM to be the 1st boot drive in BIOS. Normally, BIOS is set for the floppy to be 1st, then your C: drive to be second, and the CD-ROM 3rd. If it doesn't see a system file in the floppy or the C: drive, it looks at the CD-ROM. You want it to be sure to look at the CD, so you have to tell it to look there 1st.
Then you have to have the system file on the CD, plus whatever else you want the computer to be able to run without accessing the HDD. Make sense?
All you ever wanted to know about making boot disks is right here.
The XP CD is the bootable disk. As was pointed out, just temporarily alter the BIOS boot drive-seek order.