You can make a image of Windows XP with Norton Ghost or Drive Image. The newest version of Drive Image can burn the image on CD immediately.
If you have a spare drive or a partition, you can put it there.
But you could better ask them an original OEM Windows XP version or a recovery CD, because you paid for a Windows XP license.
You do not have to boot from floppy. Most new motherboards let you boot from CD.
It is not very difficult to install Windows.
If you are experimenting with your harddisk, always backup your important data. They are found in the directory Documents and settings.