Are you trying to install a Service Pack 1 version of XP Home?
If so, you'll need to install using Service Pack 2.
There's a way to slipstream SP2 onto your copy of Windows.
You'll have to download SP2 first.http://www.softwarepatch.com/network-security/winxpsp2-security.html
Basically you'll create a new XP Home cd with SP2 slipstreamed onto it.
Here's a link on how you do it...http://www.theeldergeek.com/slipstreamed_xpsp2_cd.htm
Hope that helps.