With the xPC Target Embedded Option you can use the DOSLoader mode to allow you to copy the xPC Target kernel to the target flash disk, remove the 3.5-inch disk drive, and then boot the xPC Target kernel. The target application is still downloaded from the host PC. Use this mode for applications where an xPC Target host is not easily accessible.
This is a 4MB video showing how to set this mode up. There is no sound so as to make the video small enough to send through email.