WinToFlash [The Bootable USB Creator]

Hello,
I am using windows 7 , i want to install XP2 i tried to install XP2 in USB by win2flash.
when i install am getting below error,

Please select the operating system to start

1st, text mode setup (Boot from flash again after finished)
2nd, GUI mode setup, continue setup + 1st start of Windows" /fastdetect
---> DEBUG, in case of HAL.DLL or NTOSKRNL.EXE not found error
Debug boot rDisk 1 partition 2
Debug boot rDisk 1 partition 3
Debug boot rDisk 1 partition 4
Debug boot rDisk 1 partition 1
Debug boot rDisk 1 partition 2
Debug boot rDisk 1 partition 3
Debug boot rDisk 1 partition 4
multi(0)disk(0)rdisk(1)partition(1)BOOTSECT.DOS

I am Helpless requesting could anyone please help me to fix this issue..?

This is not an error, this is boot menu. First, select 1st option, after reboot select 2nd, or, if it doesn't boot, try debug options.

Hello Sir ,
Thanks alot for your response.
When i select 1st option its redirecting to setup load(blue screen) page then prompting press f8 to agree, i pressed F8 then its showing only one partition that is C: that too has 3000MB size. Here i could'nt get all my drive option to format.
When i 2nd or any debug option then am getting below error,
Windows could not start because the following file is missing or corrupt.
<Windows root>\system32\hal.dll
Please re-install a copy of the above file.

Requesting you please help me ,waiting for your valuable response to fix for the same .

In this case you need to integrate your SATA controller drivers into Windows XP Setup. Use nLite for this, transfer new Windows XP Setup with SATA driver with WinToFlash and you'll see the hard drive to install!

Hello Sir,
Thanks for your valuable suggestion. Request from my side that my CD Driver is not working. So i don't have CD drive option to install so that i prefer the pendrive OS installation method. As you adviced, i need to download nlite and make changes. For that while i am running the nlite i should have kept CD Driver right?
Correct me if i am wrong..
If its possible to make these changes without CD driver can able to fix this issue, Requesting could you please tell me the step about how to do..?

Hello Sir,
Thanks for your valuable suggestion. Request from my side that my CD Driver is not working. So i don't have CD drive option to install so that i prefer the pendrive OS installation method. As you adviced, i need to download nlite and make changes. For that while i am running the nlite i should have kept CD Driver right?
Correct me if i am wrong..
If its possible to make these changes without CD driver can able to fix this issue, Requesting could you please tell me the step about how to do..?

Hello Sir,
Gentle Remainder, Could you please help me to fix this issue sir

Hello Sir,
Gentle Remainder. Could you please help me to fix the same :'( :'( :'(

In this case you need to integrate your SATA controller drivers into Windows XP Setup. Use nLite for this, transfer new Windows XP Setup with SATA driver with WinToFlash and you'll see the hard drive to install!

i need to download nlite and make changes. For that while i am running the nlite i should have kept CD Driver right????