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WinXP Install from USB Flash Drive...

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Actually I do have a Virtual Drive... I have MagicISO + MagicDisk. I also have tried Alcohol 120% and Daemon Tools, but with the ISO I have it keeps asking me to insert the XP disk into the drive which I don?t have since its a Netbook. One thing, the Virtual Drive letter I set to V:, but either way it still asks me to insert the disk even if i set the Virtual Drive letter to D:...any further advise??