Disk read error press alt+ctrl+del to restart

Hi All!
I have been facing this disk read error since couple of days. I have a 160gb hdd a new one.
I installed win xp and related drivers. Everything seemed to work fine. I installed nvidia 8600gt graphic card and its drivers. System worked properly.
I turned off the system and next day when i reboot the system i got this error message. I tried to remove the graphic card and then reboot - no good.
Tried to repair xp - no good.
Tried to format the hdd - no good.
Dont have recovery console so cant use it.
Please help!!!!!!