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How to create a boot disk
  1. Go into MY COMPUTER.
  2. Have a floppy disk in your drive and then RIGHT click on on the floppy drive and then click on FORMAT.
  3. You will be greeted with a number of options. The one you need to select is "Create an MS-DOS start up disk".
  4. Click ok.

Note: This requires up to 5 floppy disks and DOES NOT contain ANY CD-ROM drivers to boot from. A proper CD-ROM boot up disk is going to be release by Microsoft after the Windows XP public release. You can however use you old Windows Me start-up disk if you would prefer, as long as you have not upgraded to an NTFS drive.

How-to-create-a-boot-disk