Afterwards, some files are being copied to the partition...

... before the system gets rebooted:

In fact, it doesn't reboot, but shuts down. Go to View > Details:

Go to the Hardware tab and select Disk hdc (that's the Windows CD drive). Click on the Connect button:

Select ISO Image Location and fill in the path to the Windows XP ISO image (/home/winxp.iso).

Close the Virtual Machine Details window afterwards and then click on the Run button to start the guest again:

After a few moments, the Windows XP installation should continue. Just follow the wizard:

And finally, here's your Windows XP guest:

7 Links

• KVM (Ubuntu Community Documentation): https://help.ubuntu.com/community/KVM
• Ubuntu: http://www.ubuntu.com/