reinstalling Windows XP

Extract and Copy the SATA Drivers to a Floppy Disk. Boot from the XP CD and when prompted, press F6 to install the SATA drivers from the floppy disk. If you haven't a Floppy Drive Slipstream your XP installation with the SATA drivers.

How To: Slipstream your XP installation

Download nLite

http://home.midmaine.com/~nlite/nlite/nLite-1.4.8.installer.exe

These are the steps that I took

Download the Sata Drivers from the manufacturesrs web site.

Installed Nlite

Extracted Sata Drivers to a folder named Sata

Copied the entire XP CD to a folder named XPS

Ran Nlite and Browsed to the XPS folder, Next, next then selected Drivers and Bootable ISO click next

At the Drivers Tab click insert, single driver and navigate to the folder with the inf for windows XP.

Highlight it and select open and select next. Select Textmode driver and select the XP Sata driver and click OK.

Click next and Yes to apply changes, next and select Make ISO. Use Nero or similar to burn it to a CD.

Boot from your new XP CD and install XP.

Keep us informed as to your progress if you require further assistance.

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Have you tried booting from another bootable CD? The UBCD is a good one to try as is any live Linux CD such as Knoppix or Ubuntu.
http://www.ultimatebootcd.com/