There is a supported method using the XP Boot CD to chkdsk but some damage to XP is not really repairable.

We had such a system in the office for years and kept it around because it was a non-essential PC and we wanted to see if a cure could be found. In the end it turned out to be some very odd file system damage that chkdsk and fschk (see Linux) could not handle. In that case we had to backup, reinstall and restore the files.

PS. The error you supplied is widely discussed. My reply will omit the top 100 answers on google.