oh thats my bad, actually i have my boot.ini set to partition 2 and it still does not boot. multi(0)disk(0)rdisk(0)partition(2)\WINDOWS="Microsoft Windows XP Professional" /noexecute=optin /fastdetect The blue screen is not an error screen or something, if u observe, while booting, WinXP first displays a big Microsoft Windows XP logo then it displays a small windows xp logo after which it displays a welcome message and lastly the login screen. My machine hangs on the small windows xp logo [i.e it does not show me welcome]. Hope this makes sense. Wrex in order to boot your winxp you place NTLDR, NTDETECT.COM, and boot.ini files in the root of C: [Win PE] and do you get these files from the windows xp cd or you are using the pe version of all these files.... Thanks so much for all these replies....would be great if i could solve this issue....