You should try booting up with your Windows XP CD and when you get to the install options, choose "R" for the Recovery console. Once there at the C:\Windows prompt, type in "Chkdsk /R" without the quotes.
It may take a while to run, but when it's finished, type "exit", remove the Windows CD and let it reboot normally.
Post back if this doesn't help and we can try a few other things before you attempt a re-install.
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