I don't think encryption is your problem. When you drop a laptop the guaranteed casualty is primarily the hard drive, not the motherboard. The hard drive has most likely suffered physical damage and is no longer usable, hence files can't be copied from it under any circumstances. Obviously, putting that hard drive in to an identical T4220 won't work either.
Your laptop is probably okay, just needs a new hard drive and Windows installing on it, unless the laptop has suffered additional damage - - but you can count on needing a new hard drive at the very least.
Thanks for the answer - I'm almost 100% sure the hardrive is OK.
I have connected to to my desktop through a usb caddy and everything loads fine - I can see all the files and copy files that are not encrypted. The encrypted ones are in my "documents" folder. The filenames are green so this matches the description of XP encryption.
I have tried another drive in the broken laptop and it still doesnt boot up. The power comes on but no life from the screen or the fan inside.