LG GSA2164D usb problem

I own an Lg GSA2164d usb and a Ahtec Laptop with usb 1.1

The problem is that my cd rom is damaged and I wanna format my hard drive and install windows. But the thing is that my USB cd device is not recognised outside windows…

How can I solve do to instal windws with an external usb device?

In windows when I run the instalation cd ( Win XP Pro) I have two options

  • Actualize (recomended)

  • Instal Windows

In case I can´t format my HD, could I have problems if I choose the “Actualize (recomended)”?

Thanks, Rouch.