That's how it is. You can't ghost an internal HD to a USB drive and expect it to boot XP properly. You would have to install XP to the USB Drive using the instructions in the following links and only then you will might be able to boot XP successfully from USB. XP wasn't built to boot from USB.
http://gocoding.com/page.php?al=petousbhttp://www.informationweek.com/windows/showArticle.jhtml?articleID=177102101&pgno=1http://www.ngine.de/index.jsp?pageid=4176http://articles.techrepublic.com.com/5100-6346-5928902.htmlhttp://articles.techrepublic.com.com/5100-10877_11-6160062.html