You should be prompted whether you wish to boot from cd? Just press on any key while this message is on the screen and you should get a blue screen showing windows CD starting up.
If you do not get such message, you will have to change your BIOS setting to allow computer to boot from CD. Click here
Now that you were able to get the windows CD to boot, Windows XP will load the necessary file, and then ask you what you want to do. Press Enter to install windows XP.
Press F8 to accept the Agreement.
Do you see any partitions, If not try to creat one (press C)
Are you able to select a size?
You got somekind of message saying no hard drive detected or no partitions found?