I'm going to give this a go since I don't have a USB CD. I'm currently copying a Windows installation CD to a USB stick. Once I've done this and hopefully gone through the installation process, how do I get the device drivers from the ASUS DVD?
Bugger, I get the error code 18 with my USB stick.
There is a slightly easier way to do this. First make the usb key bootable then copy the i386 folder and all its contents from the WindowsXP CD to the usb key. Boot the Eee from the USB key and when you get to the dos prompt type cd i386 so it looks like this E:\I386 replacing E with the drive letter of your usb. Next type winnt.exe hit enter xp should then start to install.