|Of course, 2GB isn't nearly enough RAM for W8.1. How is the HDD partitioned? W7 & W8 setup the HDD differently so you will have to delete the System Reserved partition & the Windows partition & they will then be combined into unallocated space. Create a new partition, format, then continue with the installation.|
Assuming you have a SATA HDD, you will need to create an XP installation disc with the SATA drivers slipstreamed into it. I'm guessing you already did that using nLite?
I think you're making a mistake installing XP at this late stage, have you ever considered Linux?