|Youi may be booting from the XP cd each time. Normally when the cdrom is the first boot device in cmos/bios setup you'll get a 'boot from cd/boot from hard drive' option when a bootable cd is detected.|
When you install XP you boot up the first time with the cd but after that you boot from the hard drive.
If you're getting the 'boot from cd/boot from hard drive' option then let it boot from the cd the first time but let it boot form the hard drive after that.. If you're not getting the boot option, when the PC reboots as part of the installation, go into cmos/bios setup and set the hard drive as the first boot device..
The installation should then continue normally--if that was the problem.
And, yeah, you need to install XP on the computer in which it is to be used. You can probably format it on another computer, but why?
You're not really green until you're soylent green.