You can use the Hard Drive Makers Testing Utility to Test the Drive which can be downloaded from below.
Hitachi / IBM
Western Digital
Fujitsu
Seagate
Samsung
If it tests out OK then try this.
Make sure that the BIOS is set to Boot from CD. Insert your XP CD and when you see ?Press any key to boot from CD? press a key. Now wait for the XP installer to finish loading up and you will be presented with the option to press R to Repair.
Press R.
The next screen will ask you which Windows installation you would like to log on to. Normally the following will be listed:
1: C:\WINDOWS
Press 1, then Enter to continue.
You may now be asked for the Administrator password. If you know this type it and press Enter. If you don't know the Administrators password it may be blank. Just press Enter or type your username and password.
At the command prompt type:
chkdsk C:/r
Let it run through the 5 stages.