CD-ROM will only boot for Winows2000 and up
and when using a floppy to boot, make sure that boot disk is ok and no corruption.
Do u have access to win 98 or ME to create another boot-up floppy??? if you do, create it and try again.
computer has only 32mb of ram, it would be to slow for XP. it needs at least 32mb for core and not to mention other services