Download Memtest86+ ISO and burn to a CD, boot to CD and make sure memory is ok (2 passes is fine)

Re-seat the IDE cable on the HD & MB and make sure jumper is set to master.

Download Wipeout un-zip and copy to a Win 98 boot floppy, make sure you write down the ReadMe file so you know (gives instructions) what switch to use. WARNING! if the drive is partitioned with data all will be lost with Wipeout...

If you need a Win 98 boot disk you can get it at http://www.bootdisk.com/

If you need a floppy drive...

After HD is clean use the XP CD to format and try to install again.