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WinSetupFromUSB say that it couldn't backup MBR. no, I couldn't even place a WinXP distributive to it (see my first answer) FAT32 I have tried NTFS and it worked! Thank you for your helping question!
Yes, you can use your USB-stick for future installations without doing any special thing.
Hi All! Is it possible to install WinXP from 16Gb USB-flash? I had successfully installed this OS from 4Gb and 8Gb USB-flash, but can't do this from 16Gb