What you should have done.
1. Connect the new HD as a second HD (as Slave).
2. Install Windows XP Pro.
3. During the installation process, you specify the new HD as boot volume (and Partition) to create a new partition and format it.
4. Windows XP Pro is installed in the new partition of the new HD.
5. The C: drive is now System partition for both Windows and boot partition for Windows NT. The D: drive is the boot partition for Windows XP Pro.
6. The boot files, boot.ini, ntldr, and ntdetect.com reside in C: and C: only and it looks like the following.
[boot loader]
timeout=10
default=multi(0)disk(0)rdisk(0)partition(1)\WINNT
[operating systems]
multi(0)disk(0)rdisk(0)partition(1)\WINNT="Windows NT 4 Workstation" /fastdetect
multi(0)disk(0)rdisk(1)partition(1)\WINDOWS="Windows XP Professional" /fastdetect
7. When you boot the computer, the startup menu allows you to choose from the two Windows, NT being the default.
The way you set up now, Windows NT fails to boot, because Windows NT Registry contents (Value, Key, and Data) are referred to C: but physically in D:.
To correct the problem,
1. Connect the Windows NT HD as Master and the new HD as Slave.
2. DO not change YOUR NT?s boot.ini. This will let Windows NT to boot.
3. If NT does not boot, you may have to boot the computer with a Windows 98 Startup disk and run ?Fdisk /mbr? without the quotes at DOS Prompt.
4. Unfortunately, to dual boot with Windows XP Pro, it has to be clean installed. Delete the current partition in the new HD, create a new one, format, and install XP Pro in it.
Please add a comment if you need more information and help.