First off, creating "a bootable disc with the iso file on it" will not work. The ISO image file must be RESTORED to the CD. Think of that ISO file like a ZIP file. The contents of it must be extracted onto the CD. You must use CDRom creation software to do that just like you have to use some ZIP utility to extract a zip file. (I know WinXp can open zip files, but it doesn't work on all types of zips and it didn't used to have that ability)

With most CDRom creation programs there is an option to "Create CD from Image File" or worded something like that. You select that option and then it will ask you for the location of the Image File. You may have to change the "File Type" in order to select the ISO file. Some CDRom creation program default to looking for their own proprietary image format like Nero's .NGR. Change the File Type drop down box to be *.* and you'll be able to select the ISO file.

Secondly,
The WreckDisk boot media will start by loading DOS and then it will display the license agreement. When you answer YES to the License Agreement it will then display a warning message and ask you if you are sure you want to remove the partitions of this hard drive. This prompt has a 15 second countdown timer and if you fail to answer the question in 15 seconds it will abort the process. This was for safety reasons. If you accidentally leave your WreckDisk in a drive and reboot your machine it will not do any harm to that machine without a human to answer the question.