Hey karin,
I setup a test PC, copied the i386 folder onto an NTFS partition of a spare HDD, used NTFSforDOS and reproduced the problem you were having. After investigating further, I found that it wont be possible to start Windows XP setup from this disk. I thought maybe it was trying to setup a boot loader on the HD, but the problem I found was that it needed a FAT32 boot loader, just to start Setup, and doesn't work with with an NTFS one.
Which brings me back the my original idea, of setting up the disk with FAT32, which you have had problems doing? What problem did you encounter?
I'll write a procedure for partitioning a small portion of the disk, in FAT32 so that you always have a copy of Windows setup on there, incase anything goes wrong with Windows in the future. Kind of like a recovery partition, but you'll just need a startup disk to access it. Bear with me, some of this is off the top of my head, I'll try to provide screen shots also.
OK..
- Go to
Control Panel, Administrative Tools, Computer Management, Storage, Disk Management.
- From here (bottom right) you will see you disks and their current partitions. Right click on your disk, and
Delete Partition. (You should then have "Unallocated" for your drive).
- Right again, and
Create Partition.
- In the creation wizard, click
Next until you reach the size for your patition, select 1gb or 1024mb, will leave enough room for your i386 folder and maybe a little extra for anything else you may want to put in there at a later date.
- Before completing the wizard, you'll have an option of what file system you want to use, NTFS or FAT32. FAT32!
- Well leave Computer Management for now. You should still have unallocated space, but you'll have an option to create the Windows XP partition during the install.
- Now copy the contents of the Windows XP CD onto that partition and you'll be set to go on your PC.
- Use the Windows 98SE disk I provided earlier to boot and try the install again.