For a fresh install:
Take the drive out, format it FAT32 and make it bootable using a Win98SE boot disk to transfer the system files across
Grab the Install CD for XP and copy across the contents of the i386 folder to an i386 folder on the FAT32 drive.
Put the drive back into the Acer
It should boot to the Win98 DOS prompt
Navigate to the i386 folder and run Setup