It has been reported that some systems hang just after loading the XP ISO into memory during Step 1 XP Install but that earlier versions of E2B do not have this issue.
Try making an E2B USB drive using E2B v1.B1 (you can just click on the ‘Update E2B drive’ button of v1.B1 to change to the earlier version).
If your system works with v1.B1 and not with v2 of E2B, please could you contact me as I would very much like to identify and fix the issue which I think is due to the version of grub4dos (\grldr) that is used. To test this, make a v1.B1 version of E2B and check that it works with your XP ISO. Then replace the \grldr file with the \grldr file from the latest version of E2B and see if XP fails to load. Also try answering ‘N’ for No when it asks you about loading the ISO into memory. Please also report the system make\model and the total RAM in the system. Thanks!