Error Help needed

Hi,
please help me out here. i want to install xp over vista. issues i am facing.
1)cd drive not working- so cannot boot from cd
2)copied xp setup to external hardisk and ran setup- error was thrown (windows you currently use is a newer version, you cannot degrade)
3)i tried looking for USB boot option in bios, but only hard disk, floppy, cd, and network was there in boot options.
i am clueless now. please help me out here. what can be done??
 

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