best way to repair-install windows xp to surepos machine

Hi all
I manage around 40 ibm surepos 300 machines wich are all around 3 years old

i´ve been running into problems with capacitors and that´s an easy fix, just replace them.

however yesterday i had a corrupt windows
(windows saying could not load because of some error, safe mode doesn´t work so i need to do a repair install)
this is on a machine that had leaking capacitors wich have been replaced and the machine works fine now apart from the corrupt windows

the machine is all set up with the PoS software and correct drivers and such so i really just need to get the current installation of windows xp working, but the machine doesn´t have a cd-rom drive.

i have removed the hard drive and ran chkdsk on another machine wich didn´t find any errors.

how is windows or other operating systems usually installed on Point of sale machines
as i see it i have these options

1. usb cd-rom drive and boot windows xp setup from that (would that work) ?
2. boot from network (i have no idea how to create the .wim file for windows xp and dont have a clue if i can do a repair install from a network install) although i have a windows 2008 server that i can use for network installs.
3. windows setup from a usb chip (is that possible)
i think this will become more common in the future as the pos machines get older so i am trying to find a solution to this.

Who is Participating?
chilternPCConnect With a Mentor Commented:
1) will work if the BIOS supports booting off  USB.

4) you could plug in a CD drive into the system (with the case off and 'dangle it') then repair windows
Also if you can dangle it you may want to start taking backup images
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