As with most cool new techniques, there are a few catches. For starters, not every PC is capable of booting from a USB flash drive. For the most part, computers manufactured within the last two years are generally able to boot from a flash drive. Older systems may require a BIOS update, or might not be able to boot from a flash drive at all.
Another catch is that not every flash drive will get the job done. The primary factors that limit your use of a particular flash drive are capacity and speed. Technically, speed isn't really a limiting factor, but booting Windows will be painfully slow unless you use a flash drive that supports USB 2.0.
The flash drive's capacity is actually a limiting factor though. Surprisingly though, there are size limits on both the upper and lower end. Your flash drive can't be too large or too small. There isn't really a documented minimal size for a flash drive. You just need something large enough to hold Windows XP and a few applications. As you probably know, Windows XP normally consumes over a gigabyte of disk space. Later I will show you how to use a free utility to trim the excess fat off of Windows XP and make it a whole lot smaller. Even so, I still recommend that your flash drive be at least a minimum of 256 MB in size.
As I mentioned, there is a maximum size for the USB flash drive that you can use. Currently, USB flash drives exist in sizes of up to 4 GB, and 8 GB flash drives are expected to be available by the end of the year. As nice as it would be to have 8 GB to play with, the flash drive that you use for this project can be no larger than 2 GB. The reason for this is because you will have to format the flash drive using the FAT-16 file system, which has a 2 GB limit. Presently, you are stuck using FAT-16 because most computers will not recognize a flash drive as being bootable if the drive is formatted with anything other than FAT-16.
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