1. The bios is not set to boot your XP CD. Change that.
2. The CD drive is old and can't boot your XP CD. Try a copy of the XP CD and if that fails, change the CD Drive.
I had recieved a free laptop from somebody, a dell latitude c650. i erased the original hard drive and reinstalled the operating system, windows xp. soon i relized that the hard drive only was a 20 gb. i bought a new hard drive, a western digital scorpio 320 gb. i installed the hard drive into the laptop and tried installing windows xp. after that, it rebooted and displayed the message, "disk read error. press ctrl alt delete to reboot."i tried again and still the same message!!!!Please help this is so frustrating.