How to create a internal hard disk to boot the system and install XP

I have never heard of such a solution. Sounds like you need a cdrom and an xp cd to install xp.

Get a new CD drive, they are like 10 dollars for just a CD player.

Sounds like you need to create two primary partitions and have one of them hidden to boot from the other.

I have used this this solution in the past to boot multiple versions of Windows from one hard disk without using a boot manager - I used Partition Magic 8, but there are other solutions, and probably free ones. Easeus Partition Manager (http://www.partition-tool.com/) is a good one that I have used.

Use the XP install CD to Create the first partition and install the first XP into it.

Use a partition manager to create the second partition, make it active and hide the first. Then install XP to the second partition.

Switching between partitions can be done with a command-line program called MBRWizard (http://mbrwizard.com/).

There is probably a much easier way to do this, and the next poster will probably tell you how that is done...  

He's not trying to have two boot partitions, he wants to load an XP setup on one partition, then get that setup installed in a second one with no optical or USB drive.

You could actually try to start the XP setup on another computer with that hard-drive, then before the setup reboots, shut off the PC, move the drive to the computer, and finish the setup.

OM VASU: Guy's Thank you for your suggestions.
Actually the problem was that I got a PC which has 2 partitions and the primary partition has XP which was corrupted and was not booting, So I connected that Hard disk to another Laptop that has Win 7 and formatted the primary partition. Now I had copied all the bootalbe files into the primary and XP setup in the 2nd partition, then diconnected the Hard disk and moved back to the PC, Because of the MBR not present it was not booting. In addition the CD and DVD drives are not working and the BIOS is not capable to support USB booting I didnt understand how to resolve this. Then comes the network booting which I should have a connection that has server with Active Directory which I dont.

However the last suggestion "You could actually try to start the XP setup on another computer with that hard-drive, then before the setup reboots, shut off the PC, move the drive to the computer, and finish the setup". could be right provide the another computer should have XP environment, because I got it done with an Technician with a normal procedure.
However as far as my knowledge is concerned this can be done through network booting Provided the NIC card supporting and is working and the system is also connected to the server.
Other solution is that the Hard disk is connected in a slave mode to a standalone PC that has XP and the partition that has the XP setup can be installed on to the primary partition. Then disconnect the Hard disk and connect it back to the PC which it belongs and start the system normally.

Any way Thank you once again to all who tried to help me with their suggestions.