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Create Windows XP Bootable USB

Rufus is the solution. 

Download rufus from here

Plug in your USB Flash drive

to make a Windows bootdisk (Windows XP/7) select NTFS as file system

then click on the buttons that looks like a DVD drive, that one near to the checkbox that says "Create bootable disk usng:"

Choose the XP ISO

Click Start

 IMPORTANT: When installing Windows XP SATA Device Mode must be IDE.

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If installer cannot find the hard drive, book with a tool to command prompt and run:

diskpart

list disk

select disk {number}

clean

create partition primary

select partition 1

active

format fs=fat32 quick

assign

exit

 

and then run:

E:\I386\winnt32.exe /syspart:D: /tempdrive:D: /makelocalsource /noreboot. After Wizard finished, reboot the machine and finish the installation.