I've had the same problem in the past, always with Fujitsu drives, though.
Try these. After EACH step try to install Windows XP, again.
Chipset IDE problem:
1. With Via chipsets, it is wise to disable UDMA in the BIOS when installing Windows 2000/XP. Basically, you should run the BIOS in failsafe mode. When installing operating systems, it is NOT a good time to be overclocking. Therefore, DON'T do it. While you're at it, you may wish to disable COM and Parallel ports, if you do not already do so (after choosing "failsafe" or analogous option), but it has nothing to do with HDD.
Disk configuration, internal controller, or surface damage:
2. Try FDISK /MBR
3a. Try installing windows on that disk in a different system.
3b. Try formatting the disk with an operating system, then run a comprehensive Scandisk. See if Scandisk detects bad sectors.
4. Try installing a different OS (Linux, win9x)
If things go well in the different box, then try :
Cable issue:
5. Different IDE cables (make sure using 80 pin instead of 40)
Ominous hardware conflict:
7. Take everything out of you system except HDD, RAM, Video)
RAM insability:
6. Check your RAM (If you have two dimms take one out then try to install. If the install fails, try the other DIMM) If you only have one DIMM, try to beg, borrow, or-- otherwise-- finagle another.