What you need

- PeToUSB - Copy of Windows XP - 1GB USB flash

1: Put your Windows disc in your drive. 2: Insert your USB flash. 3: Load PeToUSB 4: Configure it with your sources and destination like this

5: Click start 6: Once it’s finished remove the USB flash and insert it into your EEE PC. Set the BIOS to boot from the USB flash. 7: Watch it install!

Ps. @ Windows7 you must manually format the stick to FAT32 and run the software as aministrator

Source: http://netbooks.modaco.com/content/msi/261632/installing-xp-via-a-usb-stick/