Windows XP Embedded is a modular version of Windows XP Pro that comes with specific tools to create the OS, and Embedded features that enable scenarios specific to the Embedded area. So the first thing you have to do to build a first Windows XP Embedded is to get the list of peripherals installed on the hardware you are targeting. This can be done using a tool called Target Analyzer. This tool can be run from DOS, Windows or WinPE.
OK, here we are with a virgin hardware (no OS, no DOS, and HD or Flash not even formatted), no floppy disk reader (that could have been useful to boot a DOS from a floppy and run the Target Analyzer tool from there).
Full Article – http://blogs.msdn.com/obloch/archive/2008/04/01/windows-xp-embedded-usb-starting-point.aspx
