Issues with formatting using USB flash disk

Hi,
I am Rachel. I am having a problem with my MSI wind U100 netbook. I bought it from a friend and I do not know if she bought it with Operating System already or if she’s the one who installed it. Anyway, my netbook needs reformatting. I have a bootable Microsoft Windows XP CD. My problem now is it does not have a CD-ROM Drive for me to install it. I do not want to spend an external disc since I am not using it.
Good thing, another friend of mine let me borrow his bootable USB flash disk. What’s weird is, whenever I ran the USB, it stops at the middle of the installation with a blue screen. I said it’s weird because that is the same USB my friend used to format his Acer laptop. I cannot remember the error message that the installation gives, but I think it has something to do with not being able to continue with the set up. Also, I see something about chkdsk. How do I go about the installation? Please help in suggesting other USB flash disk options for reinstall. I need experts please.
