On my Netbook I can get windows 7 to install and boot from USB, but when I download windows XP pro and install, I get stuck on a blue screen that says "Setup is starting windows". I can't seem to get past this with XP! I have no disk drive, so I have to boot from my 16GB USB flash. What could I do to get XP? Am I missing something for XP? I've tried so many different programs none seem to work! Unebootin WinToFlash Ubuntu.. Etc
Assuming your drive and RAM test OK, then it sounds like it may not be properly detecting the HAL (Hardware Abstraction Layer) to use.
If that's what's going on then it's probably not properly detecting that the Netbook is ACPI capable.
When you try to install XP, and it gets to the point where it prompts you to push F6 for additional drivers, hit F5 instead.
This should produce a list of HALs for you to choose from:
You may have to try a couple to figure out which works, but usually "Advanced Configuration and Power Interface (ACPI) PC" is the one you want.
More info on F5 usage here.
Sounds like it's an issue with NTDetect.com
It may also be an issue with AHCI. You could try following these instructions as well