I am fooling around with LAN booting as well, from my limited experience, I have managed to install windows 7 over a network, via PXE. I use windows server 2008 with windows deployment services.
Unless you really want to boot off a LAN, I would recommend to save your self a lot of time and trouble, and look at installing over USB, I think you can boot off a thumb drive and install XP that way, if that doesn't work I would find a USB CD drive and install it on that. Use booting off LAN as a last resort.
here is a link how to make a USB thumb drive boot XPhttp://wiki.eeeuser.com/windowsxpusb