i found that this method worked for the first part of installation in DOS- copying the files from the i386 folder in preparation, however after restarting and continuing with the installation, it seemed to only want to read from the windows xp cd which was in the drive at the time, so i think maybe once it detected it it wouldnt read the files from the hard drive anymore :( . XP installed fine and i can see how this could help someone who was constantly reformatting, i just tried it to see if it worked. :D
deed That's just because your BIOS had the CD drive as a higher priority than your HDD. When it saw a bootable disc in the CD drive it started loading from that rather than the HDD.