Don't extract the files from the iso file. Just burn it directly to the cd or dvd. You should be able to open the file with nero. If that fails there is a tool on the cd to help you but it's tricky to use from XP.
The tool on the disk is an image file you can use to force a system to boot to the Fedora install.
You can find it in /images/diskboot.img. You'll have to write that to a USB drive (it's too big for a floppy) and have it and the disk in when you boot up. The trick is writing the image. You can't really do it from Windows, nor have I found any good thrid party tools. However there is a linux command called dd that solves the problem in no time. You'd have to download Knoppix too and run it from there.
But this is a headache and frankly not worth the time for what Fedora gives you, Use Ubuntu
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