If they are SATA drives, XP does not contain native SATA support, you will have to supply the drivers when prompted during the beginning of the install. When it asks you if need to supply 3rd party drivers, you must select yes. Later the install will ask you for these drivers, and you must supply them to the install program via floppy disk, or thumbdrive.
PS never mind I see that this laptop has only an ATA drive, perhaps the drive is bad?
Another common thing to try is to pull the drive and format it in another machine. A lot of laptops use proprietary software and or partitions. I've had drives in them not format until I removed all the partitions. I've also had a few that would not find the drive at all if I did that until I took it out, formatted it elsewhere and returned it. And ONCE I had one system that had the bios on the friggan hard drive. I wiped that and the board was a coaster.