I see this is being sold with WIndows 8. And from your experiences it seems it isn't compatible with Windows XP.
The only thing you can do: reduce the memory to 4 GB (if you bought it with more) and try again. Success not guaranteed.
If no success, reinstall Windows 8 from the recovery media you made and become a happy Windows 8 user. After all, Windows XP is 12 years old and soon no longer supported, so installing it on a new desktop seems a rather bad idea.
Kees
I ended up buying a Dell Inspiron 660S. I formatted and partitioned the hard drive and tried to install XP. After loading the drivers and setup says starting Windows I got the 0x0000007B error.
This is a brand new computer. I called Dell tech support who remotely ran diagnostics and said everything was fine including the hard drive. They thought the xp install disk was corrupted and said to try another. I had another and got the same error at the same spot. I tried a friend's xp disk and got the same result.
It seems unlikely there would be 3 corrupted install disks. Any other ideas as to why this is happening? Thanks.

Chowhound
Comic Vine
GameFAQs
GameSpot
Giant Bomb
TechRepublic