Versa Drive 3.5

you can do a clean install from your usb. i use this setup for all my flash drive boots.
WinSetupFromUSB - Install Windows XP from USB Flash Drive

This guide will show you, how to use WinSetupFromUSB to create a bootable USB Flash Drive including all Windows source files, plus the following installation of Windows XP. Compare to the different USB_Multiboot versions, WinSetupFromUSB comes with a Graphical User Interface (GUI) and is in my opinion easier to use.

Here you can get the latest version of the program and you will also find many detailed informations about WinSetupFromUSB.

I've tested this guide with a 32-bit version of Windows XP and a 64-bit version of Windows Vista and it worked flawlessly.
Prerequisites:

All you need is:

a USB Flash Drive with at least 1GB of storage
the original Windows XP Setup CD
WinSetupFromUSB

If you use nLite to slim down your version of Windows XP, please keep the following in mind:
DO NOT remove "Manual Install and Upgrade"
under Operating System Options!

I also recommend to integrate Service Pack 3 into your Windows XP source files.
1. Preparations

Download and install WinSetupFromUSB. Default installation path is C:\WinSetupFromUSB.

Create a new folder with the name WINXPCD in the root directory of drive C:\ and copy all files from your Windows XP Setup CD into this folder. Depending on your version of Windows XP, the content of C:\WINXPCD should look approximately like this:

Content of WINXPCD

The following files will show you, which Service Pack is already integrated into your CD:

WIN51IC.SP1, Sevice Pack 1
WIN51IC.SP2, Sevice Pack 2
WIN51IC.SP3, Sevice Pack 3

2. Start WinSetupFromUSB

Connect the USB Flash Drive to your PC and start WinSetupFromUSB. It should show up under USB Disk Selection :

WinSetupFromUSB - main window
3. Select your Source Path

Click on Browse under Windows 2000/XP/2003 Source and navigate to the folder with your Windows XP Source Files. It should be C:\WINXPCD:

Browse to Folder

Click OK and C:\WINXPCD should show up under Windows 2000/XP/2003 Source :

WinSetupFromUSB - source path
4. Format USB Flash Drive

PeToUSB or HP Format Tool are used to format the USB Flash Drive. There is no need to download these programs seperately as they are already included in WinSetupFromUSB.

USB Flash Drives up to 2GB should be formatted with PeToUSB in FAT16, USB Flash Drives with 4GB or more with HP Format Tool in FAT32.

I will use PeToUSB to format my Kingston Data Traveler with 2GB.

In the main window of WinSetupFromUSB click PeToUSB under Format target using to start the program. The USB Flash Drive should show up under Destination Drive. Check USB Removable, Enable Disk Format and Quick Format. Uncheck Enable File Copy under File Copy Options :

PeToUSB

Click Start and answer the following two questions "Continue?" with Yes.
All existing volumes and data will be lost!

If everything goes well, the message "Operation Completed Successfully!" should appear. Click OK and close PeToUSB.

The process with HP Format Tool is similar.
5. Copy Windows XP Source Files

To start the process of copying the Windows XP source files to the USB Flash Drive, click GO in the main window of WinSetupFromUSB. Depending on the write speed of your USB Flash drive it may take a while to copy all files.

WinSetupFromUSB - file copy

At the end the following notice about the Windows installation process should be displayed:

WinSetupFromUSB - notice

Click OK and close WinSetupFromUSB with EXIT.
6. Windows Installation - Part 1

Connect the USB Flash Drive to your PC and turn on the computer. Press ESC at the boot screen and you will be able to select the USB Flash Drive as your boot device from the boot menu.
The ESC key is used by ASUS for the Eee PC series.
Other manufacturers may use other keys, e.g. F8 or F12.

After booting from USB Flash Drive, the following menu should be displayed:

Windows XP/2000/2003 Setup - First and Second parts

Press Enter or wait 10 seconds to get to the next menu:

First part of Windows XP Home Edition setup
Second part of XP Home Edition setup+Start Windows for first time

First part of Windows XP Home Edition setup is already selected. Press Enter or wait 10 seconds to start the Text mode part of setup. During this part you can create, delete and format partitions and finally the setup files are copied to your hard disk. At the end the system will restart automatically.
7. Windows Installation - Part 2

After restart, boot the PC again from your USB Flash Drive. The same menu should be displayed:

Windows XP/2000/2003 Setup - First and Second parts

Press Enter or wait 10 seconds to get to the next menu:

First part of Windows XP Home Edition setup
Second part of XP Home Edition setup+Start Windows for first time

Second part of XP Home Edition setup+Start Windows for first time is already selected. Press Enter or wait 10 seconds to start the GUI mode part of setup. During this part you will be asked for your product key, timezone, usernames and other necessary informations. At the end the system will restart automatically.
8. Windows Installation - Part 3

After restart, boot the PC again from your USB Flash Drive. The same menu should be displayed:

Windows XP/2000/2003 Setup - First and Second parts

Press Enter or wait 10 seconds to get to the next menu:

First part of Windows XP Home Edition setup
Second part of XP Home Edition setup+Start Windows for first time

Second part of XP Home Edition setup+Start Windows for first time is already selected. Press Enter or wait 10 seconds to Start Windows for the first time. The Windows installation process will be finished and finally the Windows Desktop will appear.
DO NOT disconnect the USB Flash Drive too early!

At next startup you can boot into Windows from your hard disk.
Notes:

After successsful installation, the following boot menu will always be displayed during startup:
Please select the operating system to start:

Microsoft Windows XP Home Edition
USB Repair NOT to Start Microsoft Windows XP Home Edition

If you don't plan to use the repair option and want to boot directly into windows, you have to do the following:

Open the file boot.ini in the root directory of drive C:\ with Notepad:
[Boot Loader]timeout=30
Default=multi(0)disk(0)rdisk(0)partition(1)WINDOWS
[Operating Systems]
multi(0)disk(0)rdisk(0)partition(1)WINDOWS="Microsoft Windows XP Home Edition" /noexecute=optin /fastdetect
multi(0)disk(0)rdisk(1)partition(1)WINDOWS="USB Repair NOT to Start Microsoft Windows XP Home Edition" /noexecute=optin /fastdetect

Delete the following line:
multi(0)disk(0)rdisk(1)partition(1)WINDOWS="USB Repair NOT to Start Microsoft Windows XP Home Edition" /noexecute=optin /fastdetect
DO NOT delete the wrong line!
Your computer may not boot the next time!

Save changes to the file.

At next startup the boot menu will not be displayed.

If you want to keep the repair option, you can reduce the time to display the operating system options from 30 to 5 seconds:
[Boot Loader]
timeout=5

Save changes to the file.

At next startup the boot menu will be displayed only 5 seconds.

gd luck

Sound like you have two versions of the operating system out there. Not sure what your question is. If you want to remove the old version you should have done that while you were doing the installation. That would have been easy by just telling the system to do it for you.

Now you will probably need some type of partitioning software and i'm not sure if you just delete it if it will cause problems when you try to boot because windows knows it's out there.

If I were you, I would just reinstall windows and clean the disk of everything. It shows you what it finds out there as far as operating systems, so just delete them both, then do a quick NTFS format of the drive and reinstall windows.

connect the usb drive go to control panel device manager open the usb drive in the tree right click it uninstall restart you pc.

Open Widows Explorer.
Click on My Computer.
All the drives are now listed.
The drive letter for your USB drive should be obvious but if not try removing drive and observe changes to drive descriptions.
Having located drive you can right click on it if you like and create folders within it.
Now when you 'save as' you can specify this particular drive letter and choose any folder within. Alternatively you can simply drag and drop from any other drive.

Yes, the external floppy drive must be connected directly to a USB port on the computer instead of to a USB hub.The PC can't see the drive thru the USB hub. Applies to both 32 and 64 bit.

Go to BIOS and change the USB setting to full speed and save it and continue. I am sure it will work after that....sodeep

While USB drives are 'hot-pluggable' Windows doesn't always do what is advertised (i.e. Plug and PRAY).  Try leaving the drive plugged in and rebooting the PC, it may find it that way and install a fresh driver for it.

While USB drives are 'hot-pluggable' Windows doesn't always do what is advertised (i.e. Plug and PRAY). Try leaving the drive plugged in and rebooting the PC, it may find it that way and install a fresh driver for it.

I have the same drive. It works great with windows XP but with Windows vista has difficulty seeing this type of drive and keeping the connection once it is established. Take it back if you have windows vista and then search for which 1TB drives work well with windows vista. It really has problems with windows vista 64bit. I was able to finally see the drive when I was using photoshop file/browse/network... then I dragged the shortcut Icon to my desktop and access the drive that way from that point on. Mine stopped completely tonight... I think the power cord went bad or something.

My guess is that the pc is trying to use a drive letter that is already taken. Make sure the drive is plugged in. Goto Start -> run -> type compmgmt.msc and hit enter. Click on disk management. You should see the drive in the list. Right-click the external drive and click change driver letter. choose a letter that is not already taken. that should do it..