Source: http://feeds.gawker.com/~r/lifehacker/full/~3/tlJff26ezhM/create-a-live+booting-xp-cd-or-dvd
The creators of the previously mentioned, versatile CD/DVD burning tool CDBurnerXP have posted a guide in their forums to using the program to create a live-booting Windows XP (or 2000/2003) disc. It's a multi-step process that involves a lot of settings to tweak, but at the end you should have a Windows desktop that loads straight from the boot. If you're going to roll your own live-boot XP, you might want to get familiar with trimming it down to the bare essentials for faster loads, or slipstreaming your installation to avoid Windows Update nags that will, frankly, never go away. I haven't given it a thorough test yet, but online forum users seem to give it the thumbs up. Let us know your experience with live-booting XP in the comments.
