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cant reformat corrupted laptop HDD

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OH Smeg

After the Format. That makes the Formatted Drive anything but the C Drive and Generally speaking Windows doesn't react well to not being on the C Drive.

When you restart the machine again with the XP installation Disc in the Optical Drive press Any Key when prompted to restart the Install and reinstall XP which this time will be on the C Drive. If you have messed things up so badly that this doesn't work you'll need to wipe the HDD start the install again and after the Format is finished restart the install.