Make sure you changed the boot order priority to CD-rom first in the BIOS.
If the DVD/CD drive is really dead then the easiest solution would be to replace it or borrow a friend's for the time of the installation. If this is a laptop you can use an external DVD drive (if the laptop doesn't support booting from an USB device you won't be able to use another method anyway).
What's the brand and model of your computer or of your motherboard ? You'll need to make your USB drive bootable, have a motherboard that supports booting from USB devices and edit several files because XP isn't designed to be installed from an USB drive.
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