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I have tried creating a PE Flash drive, and it creates just fine, and loads Bart to a PC via the USB port, but if you then try and boot a PC with a different configuration it gives a BSOD 7B. Boot it on the original HW and all is OK. This is what XP is supposed to do, to prevent it being used on different HW from that it was built on!
MS KB article 314082 refers, but it only gives help for booting from IDE or SCSI drives. How can you 'kid' PE that the USB
Flash drive is a CD rather than a HDD???