Running a u3 wiper should fix that Kil4Thril. However; did you place your ISO into the /bin folder and replace the existing U3CUSTOM.ISO file that was in there? Because that's a roughly 2meg file and that's what would happen if you didn't. I've used this process with knoppix, backtrack 3, an...
If you have a bootable ISO (lets say; an image of a windowsxp cd) and a u3 supporting flash drive; you can use Kingstons Universal Customizer to load it onto a flash drive and boot from it.
I have two seperate flash drives with XP install discs loaded on them. So just like Joe Average said; I...