A live cd of xbuntu is 600 MB, that is the full os being able to run, yes packages are in a compressed environment, but you can't stick a full install of XP on a cd and expect it to run.
In fact I have XP instalation CD and it works fine even without running updates.
That is an installation cd, can you put that disk in your computer and play on xp before you install it?
My statement stands, please read it again if you didn't understand it fully, but I will help out. You cannot have a live cd of xp under 2GB, I am not talking about XP PE either, that isn't the full os.
I tried ubuntu before, and it was too complicated to get anything other than steam and the other normal apps to run on it for me. I like windows because its a middle of the road OS, half user friendly, half technical if you want to edit things.