The XP Virtual system problems:
Somewhere down the bottom of the Windows start menu there should be menu options to configure and to run the XP system. It's not at all obvious how it works the first time you use it.
The new XP virtual system install is the same as a stand-alone clean XP install, there are no extra utilities or software included. You need to install everything you need within the virtual XP system.
That includes a disc burner - try imgburn, it's free and works well.
Re. the clean XP install:
The usual problem when trying to install XP on any recent machine is that XP does not include SATA chipset drivers, so can't tell there is a hard drive present.
Some other machines may have BIOS level IDE emulation, so it will get further - but still fail at some point.
You need to get the preinstall or boot or 'F6' SATA driver files to suit the SATA chipset on the motherboard.
You also need a USB floppy drive, as XP will only read the extra drivers from a floppy disc (or what it sees as Drive A:).
With most recent motherboards, as long as the USB drive is already connected at power on, it will be seen as Drive A: and XP can read from it later.
Fairly early in the XP CD setup boot, you get a message saying press F6 to install extra drivers.
Do it.
A while later, it will then prompt you to put the driver floppy in drive A:
You then select the driver(s) required for the SATA interface, and setup continues.
If you cannot get a floppy drive to work, you can make a new XP CD with the drivers included ('slipstreamed') using a free utility called 'nlite' - but be absolutely certain you have the correct drivers, it's tedious re-doing several discs with different ones..
The advantage is that the CD you make can be used again with zero hassle for future re-installs on the same motherboard.
See the links below for more info and alternate methods (US stick etc).
[I often work with old industrial machinery going back to the 80s & before. A lot of the setup & communications software for these only runs on early versions of Windows or just plain DOS.
I have SATA laptops with interchangeable hard drives, so far running Win 7 plus Win XP, Win 2000, Win 3.11 (with internet!) & DOS 6.22, also Centos linux & FreeDOS.
Older system are not easy to set up on recent hardware, but it can be done - just be patient & keep trying, it's taken me several days continuously trying alternate drivers & install methods in some cases to get an old operating system working perfectly (with all drivers) on current hardware.]