Unfortunatly it sounds like your hard drive is dead, but it may be worth trying some tools from the Recovery Console:
You WILL need an XP CD for the repair, FULL not UPGRADE.
The Windows recovery console is very good, it may help in this case.
Here's a couple of links for more information on the recovery console;
Link1 Link2
You want to try the FIXBOOT, FIXMBR and CHKDSK commands.
Run CHKDSK first, if it fails go down to the bottom of my answer otherwise....
Here's some instructions that should help:
*Boot to your XP CD
*Press any Key when you see the prompt to 'Press Any Key"
*Setup will start copying files, if you need to install any third-party or RAID drivers press F6 at this time. the copying of files can take awhile.(leave this one)
*Next you will get the option to repair or enter setup, choose to Repair.
Go from there
LINK 2 has some screen shots that may help.
If all this lot comes back fine then try a reinstall
*Boot to your XP CD
*Press any Key when you see the prompt to 'Press Any Key"
*Setup will start copying files, if you need to install any third-party or RAID drivers press F6 at this time. the copying of files can take awhile.(leave this one)
*Next you will get the option to repair or enter setup, choose to enter setup. Press ENTER.
*Press F8 if you agree to the license.
*Setup will scan for previous Windows installations.
*proably wont find any so follow promts to install
*I advise a FULL format to make sure everything is clean.
Leave to cook for 30-40 mins
IF the Recovery console doesn't work then your HDD is toast !!!
Bin it and get a new one
