OK, burn the iso as an image to a cd-disk with nero or easy cd creator.
afaik winxp does not have the native tools to make a bootable cd from an iso.
Then, I guess, insert the cdrom and start vpc.
Check vpc website and docs for howtos.
All the best, Glenn
ps. Try virtualbox from Sun Microsystems.
* VirtualBox 3.0.4 for Windows hosts x86/amd64
If you have enough space on your harddrive, vBox will work.
It's open source and free for personal use.
But if you want to run GNU/Linux securely, partition your harddrive and install linux.
Linux on windows is not as secure, but windows on linux is more so.
And, backtrack tools may not work with windows, the whole idea is to not use windows.