when i'm installing windows xp...and gets to a point where its copyin the files it says that it cannot find a file called driver.cab anyidea how to fix this?

Is your xp CD the original one from Microsoft, or did you yourself created a new CD? (Well, for example, slipstreaming SP2 with it)

This can happen if the CD is scratched. The CD isn't the original and it doesn't have the Cab file or like Mnjul said putting the i386 folder from SP2 onto an XP cd and expecting it to work which it wont because SP2 needs SP1 to be installed first.

its the original cd i didn't do anything to do it

You might want to try and contact Microsoft about it seeing how its the original CD. Is it scratched? if not try and repartition the drive using the Windows XP setup.

You can try to copy all the files from the cd to a place on ur hdd. If that works you can also try to create a new windows iso and burn it on a cd. Use nLite if you want to do that. The program can indeed also slipstream SP1 if you want to so you won't have to install it again. You can even add files to the iso or, if your drivers.cab is corrupted by a scratch, you can simply use an other windows xp cd and copy the drivers.cab in the place it should be in the map you copied all your xp files to.

nLite: http://nuhi.msfn.org
nLite Tutorials: http://nuhi.msfn.org/guides.html

If you don't want to edit any of the content of your xp cd it can also instantly create a new bootable iso.

(there is nothing illegal to it, because you can only do it if you own a copy of xp)

EDIT:

If you want to slipstream SP1 into ur iso you need to download the FULL sp1 (not the express setup) exe file (it's called network installation on the windows site). The file is 134 MB and here you can download it:
http://www.microsoft.com/windowsxp/downloads/updates/sp1/network.mspx

Remember to select your language on the right!