When I purchased a used notebook off a web based auction site, it didn't include a hard drive. In doing my search for a laptop HD, I learned how to get the disk drive from the compact flash memory.
I got myself a bootable CF to 2" IDE Adapter. This adapter helps you to make use of a compact flash card as the primary hard disk drive.
This adapter connects with the 44-pin connector for most laptop computers. I have discovered that some laptop computer connectors have a pin hole in the centre blocked, making the adapter not match. I imagine you can snip over pin or bend it backside on the adapter and it have to fit, but I have not experimented with it myself.
It is possible to boot on any kind of operating system from the CF card using this adapter. I propose you using Windows 98 as the operating system. Windows XP can make so many read/write cycles which will limit living span of the memory. Windows XP usually requires around 3 GB to install. Windows 98 only
uses a minimum of 256 MB to set up.
It is achievable use Windows XP as your operating system. I would up grade to the microdrive. However be careful, setting up Windows XP regular way, it is going to get stuck in a endless loop. There exists a key to get it to install perfectly, but I've not figured it yet. I imagine it'd need data transferred from a usual laptop hard drive.
The top advantages to implementing a CF card as a disc drive is that if the laptop becomes dropped, the memory is more likely to survive the drop over a typical hard disk drive.
The newest mini notebooks use a same set up which is known as Solid State Drive (SSD).
I use this adapter plus a 2 GB card for the laptop. It works nicely using Windows 98 also I have added in a Wi-Fi card to have World-wide-web access.