When attempting to use grub4dos to boot from an ISO to load xp on a netbook, I get a bluescreen early on in the install right after all the drivers load. I think it may be because I'm emulating the ISO as (hd32) instead of emulating a cdrom drive and that windows setup notices that there is something else in memory that ain't supposed to be there and errors out. If xp didn't see the memory that was in use at all it might not object.
title Mount and boot to xp.iso to begin xp install
find --set-root /xp.iso
map /xp.iso (hd32)
I hope that future versions of grub4dos could integrate a virtual cd/dvd-rom driver that put the drive and its used memory on lockdown to make the ISO mounting process more robust and reliable. I may also be totally wrong about where the hangup is, but it seems like installing an OS on a netbook using grub4dos would be the easiest and most modern option. The only current methods I can find involve rigging thumbdrives into thinking they're win98 boot disks and running winnt.exe... If you map the iso using --mem the install screams by (after the initial loading time) until the bluescreen. After years of installing OS's off of CD it's one of the coolest things I've ever seen :-)