simply do the following:
1.open dos through windows 98 bootable flopy disc or any other disc
2.type "cd-drive:\i386\winnt".
3.setup will start asking for path of windows files.type "cd-drive:\i386" and press enter.
4.setup will ask for smartdrive, just press enter if you don't have it.
5.setup will copy some files to the default drive and then tell you to wait but will not proceed further. it means it has hanged.
6.just restard your pc and you will gwt thw windows xp setup icon at the bootsetup screen.press enter to install windows xp.happy installing.