From the "Gparted" the /dev/sda1 size 26.09GB is the XP partition and the second one /dev/sda2 size 48.44 is the empty partition
Well, your image shows it has 959MB of data, sda2 that is so what is that? It's not an empty partition and that would be about the size of the iso. So, to clarify, did you download the 'Makulu' iso file on xp, then download unetbootin for windows to xp, then start unetbootin and put the iso on the 16GB flash, then set boot priority to boot from the flash drive and boot it?
If you did that, I'm curious as to exactly what you have on sda2.