I searched for winnt32.exe but the cpu says it doesn't exist.

then you do not have the folder.Try pressing F11 at boot just on the off chance you have a repair partition that F11 accesses. If not you will need to source a xp home oem cd or whatever flavour of xp thats on your machine

Okay I probably try this way, however when I clicked to the link earlier, the faq said that the drive need the boot/system files and have a bootsector area. I'm confused, what files are they talking about?

The link you clicked was to make your usb stick bootable but you said it already is

Okay I was just checking. I noticed another floppy disk method, the one with the six floppy disks, I was wondering would this same method work with my flash drive?

6 floppy dsic that do what