Haven’t had to do this in a while…
Reference: http://www.microsoft.com/windowsxp/using/setup/getstarted/bott_fstw.mspx
They neglected the crucial, counter-intuitive rule: You must run the wizard on the new PC first. Follow the wizard’s instructions, choosing the option to create a new Wizard Disk, use an existing Wizard Disk, or use the wizard from the Windows XP CD. When you click Next, you’ll be rewarded with the screen shown in Figure 2.

Figure 2: After you see this screen, you can safely run the wizard on your old PC.
You can now go to your old PC and run the wizard. This time, the Home or Small Office Network option should be available. You’ll be prompted to enter a random password, after which you can use the speedy network connection