Unmountable boot volume is caused by damaged disk file system or sectors. That can damage the boot sector or more, so use the Recovery Console and try the fixmbr and or fixboot, and if it doesn't help, do a checkdsk following these instructions.
You've looked tried to run chkdsk in Safe Mode? If you haven't... press F8 and hold after the BIOS post and select Safe Mode.. once loged on run chkdsk from the command prompt following the instructions in this article.
http://www.updatexp.com/windows-xp-chkdsk.html
If you can't logon in Safe Mode, you will need the Windows XP installation CD to run the Recovery Console. You may have to first set the device boot sequence in the BIOS to boot from the CD, so when you insert the XP CD and boot the computer, if it doesn't show a prompt to boot from the CD pressing any key, set the BIOS according to the info in the included link and try again.
Once booting from the CD, access the Recovery Console following the instructions in the article on the third link... and once you´re in C.. type chkdsk /r
Set The System's Boot Device Sequence
http://www.tomshardware.com/reviews/windows-pocket,1113-3.html
How to Set BIOS to Boot from CDROM:
http://www.hiren.info/pages/bios-boot-cdrom
How To Enter Windows XP Recovery Console in 6 easy steps
http://pcsupport.about.com/od/fixtheproblem/ss/rconsole.htm
Chkdsk (Recovery Console)
http://pcsupport.about.com/od/termsc/p/chkdsk.htm