Run the HDDs diagnostics tool;
Make sure you select the tool that is appropriate for the brand of your hard drive http://www.tacktech....ay.cfm?ttid=287
Depending on the program it'll create a bootable floppy or a bootable DVD/CD.
If the downloaded file is the .iso type use ImgBurn: http://www.imgburn.com/ to burn the .iso file to a DVD/CD disk depending on your OS (select "Write image file to disc" option) and make the disk bootable.
If the HDD passes the test it suggests that the OS on the HDD is badly damaged/corrupt and a fresh installation is required, for this you will need to obtain an XP disk that is the same version as what you presently have + the 25 digit product key that you may find on a sticker on the side or the rear of the case.
Let us know how the HDD test goes.