make sure in the BIOS that boot from CD is higher than HD, then with the windows xp cd inside the drive u'll get a message saying "press any key to boot from CD", now press something.
follow the screens and enjoy.
almost forgot,
after the point where it copies the files (after the format) the computer will restart then u'll get that "press any key to boot from CD", this time don't press anything.
Thank you guys for the reply!!
Yes currently in BIOS, Floppy disk is the first bootable option followed by HD and CD. Yes I will change those options....
I made a small mistake by booting WIN 98 from floppy and tried running "SETUP" from the XP CD which didnt allow me to run SETUP from MSDOS version.
I will try booting my machine from CD and then execute the SETUP command and check...
Thanks again!!