Short version.
I'm not aware that you can do this with XP. What this involves is having a linux server running a PXE server or LTSP.
Look here for information on this.
Once installed and running, you can then boot up a 'node' which is a diskless PC (mobo,proc,cpu,nic). The boot settings in the BIOS have to be set for boot LAN first, it will then search for a server. The ltsp server is waiting for it, so will attach and it will download a linux kernel and boot into it, it then uses some of the disk space from the server for it's files.
It's not that difficult, but you need to know some linux first.
In the meantime, it's just as easy to have a farm but have disks on each of the nodes, or even boot them with a cd drive using [url=http://www.knoppix.net[/url]. They can all be monitored remotely without the need for a monitor/keyboard/mouse. You only need some old 2Gb+ drives.
Hope this helps for starters.
Bok