I could give you the link for Virtualbox's homepage, but I think most of you won't know what it's talking about. Neither did I, I had to search around for quite a while before I finally understood what it does.
In brief, VirtualBox allows you to run a virtual machine on your computer, which can be configured to boot up any OS you desire (Well actually, there's only 2 common ones, Windows and Linux).
Without further ado, here are the steps I took. Note that I did the XP setup on my desktop, then transfered the VDI file over to my Eee PC. Initially I tried running it off the Eee PC, until I realised it was taking forever to complete the setup.
You can skip to step 2 if you are planning to do the entire process on the Eee PC. Instructions for installing VirtualBox on the Eee PC can be found here.
Step 1
Download the VirtualBox binary for Windows XP here. Install VirtualBox to your computer.
Step 2
Start VirtualBox. Ignore the dialog about entering a name and email. You can try, but you'll just get an IP address error.
Step 3
Now we're ready to create a Virtual Machine (VM). Click New.
Step 4
First, we need to enter a name for the VM, as well as select the type of OS that we plan to install. Click Next when done.

Step 5
Now we are prompted to select the amount of RAM to be allocated to the VM. Note that the RAM, once allocated, will no longer be available to the rest of the system.
Example:
You have 2GB RAM installed on your Eee PC.
You allocate 1024MB = 1GB to the VM.
Xandros will now only have 1GB to use until the VM is closed.
Since I have 2GB of RAM in my Eee PC, I decided to allocate 1024MB to my VM.

Step 6
Now you have to create a Virtual Hard Disk. This is a file that acts as the hard disk for XP to be installed in. Since we don't have one yet, click New to make a new Virtual Hard Disk.

Step 7
You are given two options for the virtual hard disk file.A dynamically expanding image will expand as the number of files stored in the virtual hard disk increase. A fixed-sized image has a fixed size, regardless of whether there are files inside the virtual hard disk or not. We'll go with dynamically expanding image, as that saves space on your SDHC. For reference, my virtual hard disk file with Windows XP installed is only 484MB.

Step 8
Select a location for your VDI file, and set the size of the virtual hard disk. This will be the maximum size that your virtual hard disk is allowed to grow until (if you have selected Dynamically expanding image in the previous step).
If you have selected fixed-size image, this will be the actual size of your VDI file.

Step 9
You're done! You should now see your new VM listed in VirtualBox.

Now we need to install XP to this virtual hard disk. Select your VM and click Start to "boot" it.
Step 10
You're going to get an error as no OS has been installed yet. We can mount an ISO in VirtualBox by clicking on Devices > Mount CD/DVD ROM > CD/DVD ROM Image.

If you have a CD/DVD drive, you can select the drive letter and VirtualBox will load it as well.
For those that have an ISO, click Add and select your ISO image.

Step 11
Click Machine > Reset. This time VirtualBox will boot from the CD/DVD/ISO, and start your Windows XP installation.
Step 12
Once you're done, remember to unmount the CD/DVD/ISO in order to boot into your Windows XP installation.
At this point, your virtual hard disk image is ready. With that VDI file, you can setup VirtualBox on your Eee PC to boot to Windows XP. Simply follow Steps 3 to 6, except this time you'll click Existing and select the VDI image that you've copied over to your Eee PC.
Finally, I know this guide is quite hard to follow if you don't know what's going on. I've already tried my best to explain the process step by step, but if there's anything else you can always post here or PM me
Whee.



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