Windows XP offers a function that is hidden deep inside the user account menu. It is possible to create a so called password reset disk that can be used to reset the password of the account is has been created for. You simply pop in the disk if you have forgotten your password and use it to create a new one.
There is normally no way to store the components of the password reset disk on an usb device because Windows XP is unable to access it during logon. It is not a problem to store the files on an USB device but you will face troubles when trying to access it if you lost your password.
