You need to make the USB drive bootable. Follow step 1 (and only step 1!) on this link to make it bootable:
Flashing the BIOS
Now you'll need to mount the .ISO on your computer, if you use Windows XP or Vista, the easiest way to do this is to download a trial of PowerISO (Google for it) and copy all the files inside the ISO onto your USB.
Now stick the USB in your AA1, and reboot it.
On the BIOS Startup, press F12 and select "USB HDD" from the list, if it's not there then reboot again but press F2 at the BIOS screen and press the Left arrow to the "Boot" tab, now move "USB HDD" so it is above the device labeled "IDE0" (which is your internal HDD). You can put it back afterwards, don't worry.
Now, you should get into the xXx Installer, I've no idea how it works or how to do it via xXx so you'll have to work that out yourself.
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