You need to pull that HD out and hook it up as slave on your computer. After you do so then go to MyComputer>right click on the bad HD>choose properties>Tools>Error checking>make sure you check both boxes *fix errors & recover bad sectors*

After you checkdisk the HD see if it'll boot, if not then try booting from the XP CD and do a repair. If that doesn't work then get a new HD.

I've had a couple of HD's that you would think were toast, after running Checkdisk a few times on them they worked. These were blank HD's that wouldn't format because of the bad sectors.

Good luck